what is decision making under certainty, uncertainty and risk?

Answer 1

I am sorry, but I do not understand. I think I might so here goes. The decision to make an investment into a risk, and uncertain outcome, is one of the unknown. You cannot always be safe all the time, so sometimes you have to make a decision for a risk. You can make a decision for a risk that is not as riskier as others. The decision for certainty does not always bring the highest return on your investment, but at least you still have your money in the bank. I made a decision to invest in Microsoft during the Clinton Adm., although I had only money in my SEP account, which I could move around inside the account which was a retirement account, but I could have just left it in a money market. When I saw that Microsoft was the only one doing anything, and splitting and such, I put it all in that. It did pay off and brought an initial investment of $5,000 plus other smaller investments I sold and put into the Microsoft stock. It doubles until I got 1,000 shares at $100. I did decide later that I needed the money after I reached a certain age, and began pulling it out, as I was the age to do that without penalty. So, with an additional investment of $5,000, it became $120,000. Now, in these times, it would be suicide, know what I mean. You have to calculate the risk, but it still does not always make it. You have to keep you eye on the investments, once I did not do that, as there were family issues, and I lost $10,000. You just have to really stay on top of any risk decisions, pertaining to money. Do your homework too, or you will be sorry.