A situation in which an individual has no information about probabilities and the underlying distributions of the possible outcomes of an investment choice is called:
A)a prior distribution.
B)updating.
C)risk tolerance.
D)pure uncertainty.

Question

Quizplus · Accepted Answer

Pure uncertainty refers to a situation where an individual has no information about probabilities and the underlying distributions of the possible outcomes of an investment choice. In such a situation, it is impossible to assess the risks or make an informed decision. The only option is to choose based on intuition or random selection, which means that the outcome is entirely uncertain. Therefore, D is the best answer.

A Situation in Which an Individual Has No Information About