Think of a time your boss or teacher have given you verbal instructions and directions. Did you understand the instructions the first time it was said? Do you think you understood completely what you are to do? In an exercise such as this, what major factors attributed to the variety of results? What communication barriers were evident? For those students who missed the details given in the instructions, what factors prevented them from listening or hearing? To complete this assignment, you will have to answer based on your experiences. Do not submit that you have never had an experience like this. Everyone has even if it only pertains to your parents. What is risk aversion? If you are risk averse, you avoid playing a risky game - or making a risky investment - even if the odds are in your favor. Assume that you have just won $20,000 on a TV game show. What you do with that money indicates how risk averse you are. Assume that the game show host gives you a choice: (a) Quit now and take the $20,000 home; or (b) Play again, with a 50% probability that you will win and wind up with $40,000. If you quit now, you are risk averse. The change of doubling your winnings is not worth the risk of losing what you have. If you continue, you prefer risk. You would rather give up the $20,000 for a chance of doubling it than to keep it. If you feel you could go either way, you probably have enough money so that the risk of losing $20,000 does not scare you.Discussion questions: 1. What decision would you make? 2. What factors helped you in making your decision? 3. In what situation might you have taken a different approach? 4. How does your risk aversion affect the way you might invest your money