Examples of events that increase risk aversion include
A) a stock market crash.
B) assassination of a key political leader.
C) the outbreak of war.
D) all of the above.

Question

Quizplus · Accepted Answer

All three events can increase uncertainty and volatility in the financial markets, leading investors to become more risk-averse. A stock market crash is a clear indicator of market turbulence, while the assassination of a key political leader or the outbreak of war can lead to political instability and economic uncertainty, making investors hesitant to take on riskier investments.

Examples of Events That Increase Risk Aversion Include