CAPM (Certified Associate in Project Management) Practice Exam

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Study for the CAPM Test. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

A stakeholder that is considered risk averse is likely to:

Avoid risk wherever possible
Tolerate moderate levels of risk
Seek out high-risk opportunities
Be indifferent to the level of risk

The correct answer is: Avoid risk wherever possible

A stakeholder that is considered risk averse is likely to avoid risk wherever possible. This is because risk-averse individuals are more concerned with preventing losses and preserving their current situation rather than taking risks that could potentially lead to negative outcomes. Therefore, choosing to avoid risk wherever possible is the characteristic behavior of a risk-averse stakeholder. In contrast, the other options can be considered incorrect: - Option B: Tolerating moderate levels of risk goes against the risk-averse nature of the stakeholder. - Option C: Seeking out high-risk opportunities is not aligned with the risk-averse behavior. - Option D: Being indifferent to the level of risk is not typical of a risk-averse stakeholder's mindset.