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kirza4 [7]
3 years ago
11

The following is not an example of risk aversion a. ​Individuals tend to gamble more with their money when the future is uncerta

in b. ​you only go swimming when the lifeguard is on duty c. ​you are more careful when you buy a more expensive car d. ​you lock your garage when you have expensive workshop tools
Business
1 answer:
vodomira [7]3 years ago
4 0

Answer:

The correct answer is letter "A": ​Individuals tend to gamble more with their money when the future is uncertain.

Explanation:

Risk aversion in Finance describes an investor who is just willing to accept a small level of risk on his investments. A risk-averse investor likes less risk and is prepared to accept fewer returns because of his choice. In a few words, risk aversion represents the likelihood investors prefer to secure their investments instead of risking more expecting higher returns.

Thus, <em>individuals gambling more when the future is uncertain reflects an opposite scenario to risk aversion.</em>

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Hoped this helped.

~Bob Ross®
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