The statement that the people very sensitive in taking risks totally avoid risks whenever possible is a TRUE statement. Such people do not fall under the category of risk-takers.
Risk ability is referred to as the desire to take risk based upon their risk profile and factors contributing to such decision like age, financial stability, responsibilities, etc.
Risk profile
- The person who are willing to take risks and move ahead are called the risk-takers. Whereas, people who are very reluctant and hesitant in taking risks are referred as the risk aversers in business terms.
- Risk aversion is the condition in which the person might not accept the difficult and extra rewarding alternative as there is a risk involved given that factors like age, stability, responsibilities, etc. also apply.
- To explain this, it can be stated that a risky investor doesn't sell off his securities if their market value is declining, however a risk sensitive person will sell them early to avoid further losses.
Hence, the statement regarding the risk sensitive person's ability to avoid risk whenever possible is TRUE.
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https://brainly.com/question/7128161
