Risk aversion is the tendency to place greater weight on possible losses than on ____.
A)possible gains
B)past gains
C)possible negative outcomes
D)definite outcomes

Question

Risk aversion is the tendency to place greater weight on possible losses than on  ____.
A)possible gains
B)past gains
C)possible negative outcomes
D)definite outcomes

Quizplus · Accepted Answer

Risk aversion is the tendency to prefer avoiding losses rather than acquiring equivalent gains. It means that people are more concerned about avoiding losses than they are about achieving potential gains.

Risk Aversion Is the Tendency to Place Greater Weight on Possible