Asked by
Kylee DePew
on Nov 16, 2024Verified
Risk-averse individuals like good things more than they dislike comparable bad things.
Risk-averse Individuals
People who prefer to avoid risk and would rather accept a lower expected return on an investment than subject themselves to higher volatility and potential loss.
Comparable Bad Things
Situations or items that have similarly negative attributes or impacts, allowing for a comparison of their undesirability.
- Apprehend the idea of risk aversion and the way it shapes decisions.
Verified Answer
TB
Learning Objectives
- Apprehend the idea of risk aversion and the way it shapes decisions.