The Concept of Being Risk Averse Means

question 51

Multiple Choice

The concept of being risk averse means

• A) for a given situation investors would prefer relative certainty to uncertainty.
• B) investors would prefer investments with high standard deviations and greater opportunity for gain.
• C) that the greater the risk the higher the expected return must be.
• D) two of the other answers are correct

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Definitions:

Market Size

The total volume of sales or potential sales in a particular market or industry.

Fourth Year

Typically refers to the final year of a four-year undergraduate college or high school program, often involving advanced courses and preparation for graduation.

Total Revenue

The total income generated by a firm from its sales of goods or services, calculated before any expenses are subtracted.

Second Year

Refers to the second stage or level in an academic program, typically in high school, college, or university education, following the freshman year.