Refer to the graph below. It shows 2 indifference curves: for person A and for person B. Which person, A or 4) B, is relatively more likely to take on the risk when the probability of injury at work is 70%? Explain why. Make sure to indude the analysis of the difference in the shape of the 2 curves. Be as detailed as possible. Wage UA Probability of Injury Figure 1. Indifference Curves of Person A and Person B

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Risk and return

Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary. 

Capital Asset Pricing Model

Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.