CAPM Practice Exam 2025 – Complete Study Resource

Question: 1 / 885

A stakeholder that is considered risk averse is likely to:

Avoid risk wherever possible

A stakeholder that is considered risk averse is likely to avoid risk wherever possible. This is because risk-averse individuals are more concerned with preventing losses and preserving their current situation rather than taking risks that could potentially lead to negative outcomes. Therefore, choosing to avoid risk wherever possible is the characteristic behavior of a risk-averse stakeholder.

In contrast, the other options can be considered incorrect:

- Option B: Tolerating moderate levels of risk goes against the risk-averse nature of the stakeholder.

- Option C: Seeking out high-risk opportunities is not aligned with the risk-averse behavior.

- Option D: Being indifferent to the level of risk is not typical of a risk-averse stakeholder's mindset.

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Tolerate moderate levels of risk

Seek out high-risk opportunities

Be indifferent to the level of risk

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