In which of the following cases would you be more likely to decide whether to take on the risk involved by looking at a measure of the value at risk? (LO2)
a) You are unemployed and are considering investing your life savings of $10,000 to start up a new business.
b) You have a full-time job paying $100,000 a year and are considering making a $1,000 investment in stock of a well-established, stable company.
Explain your reasoning.