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)Uncertainty
B)Risk
C)Certainty
D)Probability

Question

Quizplus · Accepted Answer

The manager is operating under the condition of risk, which involves making decisions based on the probability of certain outcomes. By looking at past investment records, the manager is trying to assess the likelihood of each fund performing well in the future. This involves some level of uncertainty, as the manager cannot guarantee that the past performance will continue, but it is still a situation where probabilities can be estimated and used to make a decision.

A Manager Has a Choice of Three Investment Funds