Question: Select the most accurate statement regarding the risk tolerance parameter. The risk tolerance parameter of a highly profitable firm is likely to be smaller than

Select the most accurate statement regarding the

Select the most accurate statement regarding the risk tolerance parameter. The risk tolerance parameter of a highly profitable firm is likely to be smaller than the risk tolerance parameter of a less profitable firm. The smaller the risk tolerance parameter, the greater the tolerance for risk. The risk tolerance parameter of a large firm is likely to be smaller than the risk tolerance parameter of a small firm. The risk tolerance parameter influences the relationship between a payoff and the utility of the payoff. The risk tolerance parameter is a value between 0 and 1

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