The Concept of Being Risk Averse Means

question 41

Multiple Choice

The concept of being risk averse means:

• A) for a given situation investors would prefer relative uncertainty to certainty.
• B) investors would prefer investments with high standard deviations and greater opportunity for gain.
• C) that the lower the volatility the higher the standard deviation must be.
• D) that the greater the risk the higher the expected return must be.

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Definitions:

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