A manager has a choice of three investment funds.To assess them, he looks at their past investment records over the previous five years.The manager is operating under which condition?
A)certainty
B)probability
C)uncertainty
D)risk

Question

Quizplus · Accepted Answer

The use of past investment records to assess the performance of investment funds indicates that the manager is operating under the condition of risk, as there is a degree of uncertainty regarding future investment outcomes but there is historical data that can be used to make informed decisions. Choice D, risk, is therefore the best answer for this scenario.

A Manager Has a Choice of Three Investment Funds