Question

Which involves the possibility of both a gain and a loss?

A) Risk tolerance
B) Risk avoidance
C) Uncertainty
D) Risk taking

Answer 1

The answer is A) Risk tolerance.

Step-by-step explanation:

Risk tolerance refers to the degree to which an individual is comfortable with taking on risk in their investments or other decisions. It involves the possibility of both a gain and a loss. Some people have a high risk tolerance, meaning they are comfortable with taking on more risk for the potential of higher returns, while others have a low risk tolerance and prefer to avoid risk and prioritize stability and security.

Answer 2

ANSWER -

The answer is A) Risk tolerance. Risk tolerance involves the willingness of an individual or organization to accept or undertake risk. It involves the possibility of both a gain and a loss, which is why individuals or organizations need to determine their risk tolerance levels before making decisions about investments, business ventures, or other potential opportunities.