As he starts his research, Eli notices that some opportunities appear to be riskier than others. When considering various opportunities, Eli should keep in mind that
A) he will be better off picking a low-risk business opportunity, since the safest ones are usually the most profitable as well.
B) even though some opportunities appear riskier than others, the level of risk actually varies little from one opportunity to another.
C) high-risk business opportunities often have the potential for high returns as well.
D) government regulations are in place to protect investors and entrepreneurs from failure, so there is no need to worry about risk.

Question

As he starts his research, Eli notices that some opportunities appear to be riskier than others. When considering various opportunities, Eli should keep in mind that 
A) he will be better off picking a low-risk business opportunity, since the safest ones are usually the most profitable as well.
B) even though some opportunities appear riskier than others, the level of risk actually varies little from one opportunity to another.
C) high-risk business opportunities often have the potential for high returns as well.
D) government regulations are in place to protect investors and entrepreneurs from failure, so there is no need to worry about risk.

Quizplus · Accepted Answer

In many cases, business opportunities that have the potential for earning high profits also carry a high level of risk. Investors must weigh profit and risk and choose opportunities that offer an acceptable trade-off between the two.

As He Starts His Research, Eli Notices That Some Opportunities