Business executives and choice of risk example- study, Ask an Expert

Economics

Business Executives and Choice of Risk

* Example

- Study of 464 executives found that:

20% persons were risk neutral
40% persons were risk takers
20% persons were risk averse
20% persons did not respond

* The persons who liked risky situations did so when the losses were involved.

* When risks involved gains same, executives opted for less unsafe situations.

* The executives made efforts to reduce or eliminate risk by delaying decisions and gathering more information.

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M9511062

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