Question

One situation is riskier than another if it has
A. a greater expected loss.
B. a lower uncertainty.
C. a lower expected loss.
D. no uncertainty.

Answer 1

The answer is A. - a greater expected loss.

Explanation - A - a greater expected loss means that the situation may turn out to be in loss, making it risky

B - a lower uncertainty would mean more surety about the result and hence less risk

C- Lower expected loss means situation may turn into profit, making it less risky

D- No uncertainty would mean complete surely about the result and hence no risk

Hence, the answer is A.