Risk Aversion Is the

Risk aversion is the

A) general human tendency to stay away from activities that are dangerous, even if they may be fun.
B) reluctance to choose an uncertain option that, on average, pays better than the certain payoff of a second option.
C) reluctance to enter into any transaction in which the outcome is not known with certainty.
D) tendency to seek out activities that are mildly dangerous but thrilling.

Correct Answer:

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