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In terms of risk propensity, a gambler is similar to a:

A) Conservative investor
B) Moderate investor
C) Speculative investor
D) Risk-averse investor

User Alphiii
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1 Answer

7 votes

Final answer:

A gambler's risk propensity matches that of a speculative investor, as both are willing to take high risks to possibly secure high rewards, unlike conservative or moderate investors.

Step-by-step explanation:

In terms of risk propensity, a gambler is most similar to a C) Speculative investor. Both are characterized by a willingness to take high risks in pursuit of high rewards. A gambler engages in betting or gambling activities where there is a significant chance of losing their money but also the potential for substantial gains. Similarly, a speculative investor takes considerable risks in the financial markets, often investing in high-volatility assets or engaging in high-risk strategies with the hope of making large profits. In contrast, a conservative or risk-averse investor avoids such high-risk scenarios, seeking more stable and predictable returns, and a moderate investor prefers a balanced approach with a mix of risk and safety.

User Pprados
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