The Concept of Being Risk Averse Means

question 42

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 higher the risk the lower the expected return must be.
• D) investors prefer low risk to high risk investments.

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Definitions:

Occasionally

Refers to something happening at irregular intervals or infrequently.

Orgasm

A peak moment of sexual pleasure accompanied by a release of sexual tension, often resulting in involuntary muscle contractions and ejaculation.

Sum

The result obtained by adding together different quantities, numbers, or elements.

Effects

The outcomes or changes that result from a particular cause or action.