To an economist,risky options ________.

Question

Quizplus · Accepted Answer

Risky options do not have costs and benefits that are fixed in advance. The potential outcomes of risky options are uncertain and can result in either gains or losses, which makes them unpredictable. Therefore, economists need to carefully evaluate the potential payoff of a risky option versus its potential downside before making a decision. Risky options are not inherently good or bad; their value depends on the specific circumstances and individual preferences of the decision-maker.

To an Economist,risky Options ________