CIMA Exam CIMAPRO19-P01-1 Topic 7 Question 101 Discussion

Actual exam question for CIMA's CIMAPRO19-P01-1 exam

Question #: 101
Topic #: 7

[All CIMAPRO19-P01-1 Questions]

A decision maker that makes decisions using the minimax regret criterion would be classified as:

ARisk averse

BRisk seeking

CRisk neutral

DRisk spreading

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Suggested Answer: A

References:

by Edda at Sep 18, 2024, 04:00 PM

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Kimi

2 months ago

I'm going with C) Risk neutral. Minimax regret is all about playing it safe, not about taking big risks. Though I do like the idea of 'risk spreading' - maybe they should call it the 'don't put all your eggs in one basket' criterion.

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Adela

2 months ago

B) Risk seeking? Really? I don't see how trying to minimize your maximum regret is the same as being a risk-taker. That's a bit of a stretch.

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Shawn

26 days ago

D) Risk spreading

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Karma

28 days ago

C) Risk neutral

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Adela

1 months ago

A) Risk averse

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Audra

2 months ago

D) Risk spreading? That's an interesting one. I wonder if the minimax regret method could be considered a form of risk diversification.

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Elenore

25 days ago

That makes sense. It's all about making decisions that minimize potential losses.

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Dorothy

26 days ago

It's possible, since the minimax regret criterion aims to minimize the maximum regret.

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Dannie

1 months ago

I think it could be a form of risk diversification.

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Wilson

1 months ago

D) Risk spreading

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Aleisha

2 months ago

C) Risk neutral

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Hershel

2 months ago

B) Risk seeking

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Agustin

2 months ago

A) Risk averse

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Felton

3 months ago

That makes sense, they are not necessarily seeking risk but trying to avoid regret. So, risk neutral could be the right answer.

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Rolande

3 months ago

I disagree, I believe they would be risk neutral because they are trying to minimize their maximum regret.

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Merilyn

3 months ago

C) Risk neutral, definitely. The minimax regret approach doesn't seem to have a preference for risk, it's just trying to make the safest choice.

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Hillary

2 months ago

B) Risk seeking

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Antonio

2 months ago

C) Risk neutral

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Goldie

2 months ago

A) Risk averse

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Felton

3 months ago

I think a decision maker using minimax regret criterion would be risk averse.

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Diane

3 months ago

I think the answer is A) Risk averse. The minimax regret criterion is all about minimizing the maximum potential regret, which seems pretty risk-averse to me.

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Eladia

2 months ago

Yeah, I think A) Risk averse is the best choice here. It's all about playing it safe.

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Stephaine

3 months ago

I agree, A) Risk averse makes sense. Minimizing regret is definitely a cautious approach.

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