Which of the Following Statements Regarding Risk-Averse Investors Is True

question 15

Multiple Choice

Which of the following statements regarding risk-averse investors is true?

• A)They only care about the rate of return.
• B)They accept investments that are fair games.
• C)They only accept risky investments that offer risk premiums over the risk-free rate.
• D)They are willing to accept lower returns and high risk.

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Definitions:

Entrepreneur-Intended

Describes a person or action deliberately aimed at creating new ventures or businesses, typically with a plan and intention to grow.

Market Sizing

A method of estimating the number of potential customers and possible revenue or profitability of a product or service.

Customer Base

The group of customers or consumers who repeatedly purchase the goods or services of a business, forming the foundation of the company's sales.

Revenue Potential

An estimate of the amount of money a business can generate from its activities within a certain period.