Which of the Following Describes the Attribute of a Risk

question 41

Multiple Choice

Which of the following describes the attribute of a risk averse investor?

• A) An investor that makes decisions based on the popularity of assets.
• B) An investor that makes decisions based on the expected return of assets.
• C) An investor that makes decisions based on the advice of financial planners.
• D) An investor that makes decisions based on the expected return and the degree of risk of assets.
• E) An investor that makes decisions based on the credit rating of assets.

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Definitions:

Descriptive Variables

Variables that are used to summarize or describe characteristics of a set of data.

Causal Variables

Factors that directly influence the outcome of a situation, where changes in these variables cause changes in other variables.

B2B Market

Business-to-Business market, where transactions are conducted between companies, rather than between companies and consumers.

Macro Variables

Broad variables that describe the overall context of an economy, such as GDP, unemployment rates, inflation, and interest rates.