This best describes which of the following risk concepts?

Posted by: Pdfprep Category: IIA-CRMA Tags: , ,

An organization invests its savings in a volatile stock with the potential for high gains rather than a mutual fund with a lower expected return and lower volatility.

This best describes which of the following risk concepts?
A . Risk identification.
B . Risk appetite.
C . Risk capacity.
D . Risk tolerance.

Answer: D