Business Executives and Choice of Risk
* Example
- Study of 464 executives found that:
- 20% persons were risk neutral
- 40% persons were risk takers
- 20% persons were risk averse
- 20% persons did not respond
* The persons who liked risky situations did so when the losses were involved.
* When risks involved gains same, executives opted for less unsafe situations.
* The executives made efforts to reduce or eliminate risk by delaying decisions and gathering more information.