Match the type of investor to the attitude to risk: Risk averse (i) Minimax regret (ii) Relevant costing (iii) Perfect information (iv) Maximin (v) Maximax (iv) Expected values Risk seeker (i) Minimax regret (ii) Relevant costing (iii) Perfect information (iv) Maximin (v) Maximax (iv) Expected values Risk neutral (i) Minimax regret (ii) Relevant costing (iii) Perfect information (iv) Maximin (v) Maximax (iv) Expected values
【参考答案及解析】
The correct answers are: Attitude to risk Decision making method adopted Risk averse Maximin Risk seeker Maximax Risk neutral Expected values Maximax decisions are taken by risk-seeking decision makers, also known as optimists, as they aim to maximise the maximum return available. Maximin decision are taken by risk-averse decision-makers, also known as pessimists, as they aim to maximise the minimum return available. A decision maker who bases these decisions on expected values is concerned with the most likely outcome and therefore ignores the variability of the returns. This is known as a risk-neutral approach to decision making.
The correct answers are: Attitude to risk Decision making method adopted Risk averse Maximin Risk seeker Maximax Risk neutral Expected values Maximax decisions are taken by risk-seeking decision makers, also known as optimists, as they aim to maximise the maximum return available. Maximin decision are taken by risk-averse decision-makers, also known as pessimists, as they aim to maximise the minimum return available. A decision maker who bases these decisions on expected values is concerned with the most likely outcome and therefore ignores the variability of the returns. This is known as a risk-neutral approach to decision making.