Risk Aversion Describes a Person's Tendency To

question 48

Multiple Choice

Risk aversion describes a person's tendency to:

• A) avoid risk at all cost.
• B) be conservative in assessing a certainty equivalent.
• C) select the safest option.
• D) attach lower marginal utility to higher monetary outcomes.
• E) always pay for 100% insurance against risks.

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Definitions:

Andrew Ure

A Scottish doctor, scholar, and significant figure in the Industrial Revolution known for his work in chemistry and contributions to industrial management.

Sick Leave

Paid or unpaid time off from work that an employee is allowed to use to recover from illness or seek medical treatment.

Mutual Respect

The positive consideration or regard that two people have for each other.

Self-Disclosure

A process through which an individual shares personal, private information or feelings with others.