Which of the following refers to the willingness to undertake risk with the opportunity of gaining an increased payoff?
A) Tunnel vision
B) Risk propensity
C) Risk aversion
D) Thrill seeking
E) None of these

Question

Quizplus · Accepted Answer

Risk propensity refers to the willingness to undertake risk with the opportunity of gaining an increased payoff. Choice A, tunnel vision, refers to being overly focused on one particular goal, ignoring outside information or options. Choice C, risk aversion, refers to the tendency to avoid risk, even if it means potentially sacrificing potential gains. Choice D, thrill seeking, refers to the desire for excitement or stimulation, regardless of the potential risks involved.

Which of the Following Refers to the Willingness to Undertake