alifaisya banner

alifaisya banner
Click My Online Shop

Monday, November 27, 2006

Are You Risk Averse or Risk Seeking?

People's unwillingness to accept losses are generally because they are risk averse or loss averse. It means that they have a preference for certain outcome over uncertain outcome. So lets see which category are you in? Choose one of the following:

A) A sure win of $5,000

B) An 80% chance of winning $6,000 & a corresponding 20% chance of winning nothing.

C) A sure loss of $5,000

D) An 80% chance of losing $6,000 & a corresponding 20% chance of losing nothing.

Answer: Those who chose A or C is of risk averse type. Those who chose B or D is of a risk seeking type.

No comments:

Share Now!