The margin of safety can be adjusted according to .a.Greater outcome on taking riskb.Severity of downsidec.None of these

The margin of safety can be adjusted according to:

a. Greater outcome on taking risk b. Severity of downside c. None of these

Step 1: Read the question and options carefully to understand what is being asked.

Step 2: Identify the options provided: a, b, and c.

Step 3: Analyze each option to determine how the margin of safety can be adjusted.

Option a: Greater outcome on taking risk - This suggests that if the potential benefits or rewards of taking a risk are higher, the margin of safety can be adjusted accordingly. In other words, if the potential gains outweigh the potential losses, a smaller margin of safety may be acceptable.

Option b: Severity of downside - This implies that the margin of safety should be adjusted based on the potential negative consequences or losses that could occur. If the downside is more severe, a larger margin of safety may be necessary to mitigate the risks.

Option c: None of these - This suggests that neither the greater outcome on taking risk nor the severity of downside should be considered when adjusting the margin of safety. In this case, it is unclear what factors should be taken into account.

Step 4: Evaluate the options and choose the most appropriate answer based on the information provided.

Based on the options provided, the correct answer would be either option a or option b, depending on the specific circumstances and risk tolerance of the individual or organization.