Influences of choices
Risk aversion examples
1. Choosing to invest in government bonds instead of stocks due to fear of losing money in the stock market.
2. Selecting a conservative career path over a more risky entrepreneurial venture to ensure a stable income.
3. Opting for a fixed-rate mortgage instead of an adjustable-rate mortgage to avoid potential interest rate hikes.
4. Keeping a substantial emergency savings fund instead of investing in higher-risk assets to protect against unexpected financial setbacks.
5. Preferring traditional job security over freelance or gig work to ensure a steady paycheck and benefits.