Question 4 • CMS 2026-2027 Economics and Personal Finance CREDIT RECOVERY
Assessing a purchase’s risk and return means estimating the likely benefit, identifying what could go wrong, and deciding whether the potential benefit justifies that risk. Those questions are “What is the likely return?”, “What can go wrong?”, and “Is the risk worth the return?” Social status and friends’ purchases do not directly assess risk and return.
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