You have saved a total of $200,000 over the past several years.Jane,a trusted business associate,recently approached you with an offer.She has offered you a partnership in a new firm that she expects to be exceedingly profitable.Your initial investment in the partnership would be $125,000.However,Jane cannot give you any odds on that success occurring.You have decided to keep your $125,000 and forego this opportunity simply because you don't know the probability of success.Which one of the following behavior characteristics do you have?
A)aversion to ambiguity
B)recency bias
C)sentiment-based risk aversion
D)clustering illusion
E)money illusion

Question

Quizplus · Accepted Answer

Aversion to ambiguity refers to a tendency to avoid uncertain situations or decisions where the outcome is unclear. In this scenario, the individual is hesitant to invest in the partnership because they do not have a clear understanding of the probability of success, indicating an aversion to ambiguity.

You Have Saved a Total of $200,000 Over the Past