It is appropriate to take any risk that is better than a fair bet when:

Question

Quizplus · Accepted Answer

When the stakes are small enough, it is appropriate to take any risk that is better than a fair bet. This is because the potential loss is limited and the potential gain may be worth the risk. However, if the stakes are large, it is not advisable to take any risk that is not a sure thing, even if the potential gain is high. Similarly, if risk aversion is high or the risk itself is high, it is best to avoid taking unnecessary risks.

It Is Appropriate to Take Any Risk That Is Better