People who choose not to participate in fair gambles are called
A)risk takers.
B)risk averse.
C)risk neutral.
D)broke.

Question

Quizplus · Accepted Answer

People who choose not to participate in fair gambles are called risk averse. They are unwilling to take on a risk that has an equal chance of resulting in a gain or loss, which is characteristic of a fair gamble. Therefore, they prefer to avoid the gamble altogether. Choices A and C are not accurate as they refer to people who actively participate in risk-taking behavior. Choice D is not relevant to the given context.

People Who Choose Not to Participate in Fair Gambles Are