Final answer:
Jerry buys underpriced stocks as part of a long-term investment strategy, aiming to capitalize on the high returns that the stock market offers over extended periods, rather than seeking immediate gains through speculation. Option b.
Step-by-step explanation:
Jerry's motive for buying underpriced stocks likely centers on a long-term investment strategy option b. This approach is informed by the understanding that over several years or decades, the stock market can yield high returns despite high risk and fluctuation in the short term. By choosing stocks that are undervalued, Jerry is likely looking to profit from eventual market corrections that bring the stock's price up to its intrinsic value. This decision does not primarily reflect risk aversion, risk-taking appetite, or market speculation, but rather a strategy to maximize returns over time while potentially minimizing risk. Considering various factors such as age, economic status, and long-term goals is essential when contemplating the tradeoffs between risk and return in personal investing.