Which of the Following Is NOT a Correct Statement

question 13

Multiple Choice

Which of the following is NOT a correct statement?

• A)Risk-averse investors will not willingly undertake fair gambles.
• B)Risk-averse investors prefer to gamble on a risky situation where there is an equal probability of winning or losing the same amount of money.
• C)Risk-averse investors require a risk premium to bear risk; the more risk averse they are, the higher the risk premium they require.
• D)Risk-averse investors are willing to pay an insurance premium to get out of a risky situation.

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Definitions:

Void

Having no legal force or effect; null and incapable of being ratified or confirmed.

Ambiguity

The presence of uncertainty or unclear meaning in language or situations.

Outside Evidence

refers to information not contained within the principal documents of a case, used to support a legal argument.

Party Responsible

The entity or person held accountable for an action or the fulfillment of an obligation.