Match the following concepts related to risk and uncertainty to their respective descriptions:

Concept Description

1) Risk Aversion A) Prefers a certain outcome over a gamble with higher expected value.

2) Risk Neutrality B) Indifferent towards risky choices, valuing outcomes based only on expected returns.

3) Risk Seeking C) Prefers taking risks to increase potential rewards, even at the cost of higher probabilities of loss.

4) Certainty Equivalent D) The guaranteed amount of money an individual would accept instead of taking a risky gamble.

Question

Concept	Description
1) Risk Aversion	A) Prefers a certain outcome over a gamble with higher expected value.
2) Risk Neutrality	B) Indifferent towards risky choices, valuing outcomes based only on expected returns.
3) Risk Seeking	C) Prefers taking risks to increase potential rewards, even at the cost of higher probabilities of loss.
4) Certainty Equivalent	D) The guaranteed amount of money an individual would accept instead of taking a risky gamble.