An examples of risk aversion

Answer 1

1. An individual who opts for a stable, low-risk investment such as government bonds instead of investing in high-risk, high-return stocks.
2. A person who purchases extensive insurance coverage for all aspects of their life to protect themselves against any potential risks.
3. A company that avoids entering new markets or expanding their product line due to the uncertainty and potential risks involved.
4. An individual who always chooses to take the safer route in any decision-making process to avoid potential negative outcomes.
5. A student who chooses a major with stable and secure career prospects rather than pursuing their passion in a more uncertain field.