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20 March, 22:35

Provide a real-world organization that is an example of each level of risk tolerance. Include the company name and industry for each. Include an explanation of whether the company is risk-averse, risk-neutral, or risk-seeking.

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  1. 20 March, 22:59
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    Risk-averse: An example of a risk-averse company would be Kodak. this company was so risk averse it did not expand in time, making it impossible for it to stay afloat.

    Risk-neutral: When a company is risk-neutral, it is indifferent to risk when it comes to an investment. Many companies related to government follow this pattern, as they are mostly unconcerned without money and instead focus on other missions.

    Risk-seeking: Risk seeking is a acceptance of volatility and uncertainty in the hopes for obtaining higher results. Many startup companies could be considered risk-seeking.
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