An organization invests its savings in a volatile stock with the potential for high gains rather than a mutual fund with a lower expected return and lower volatility. This best describes which of the following risk concepts?
A) Risk identification.
B) Risk appetite.
C) Risk capacity.
D) Risk tolerance.

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The Answer of An organization invests its savings in a volatile stock with the potential for high gains rather than a mutual fund with a lower expected return and lower volatility. This best describes which of the following risk concepts?
A) Risk identification.
B) Risk appetite.
C) Risk capacity.
D) Risk tolerance.

An Organization Invests Its Savings in a Volatile Stock with the Potential