Scenario: Three Investment Options Are Available in a Market

question 62

Multiple Choice

Scenario: Three investment options are available in a market. All three options provide the same expected rate of return but have different levels of risk associated with them. Investing in Option A is the riskiest, while investing in Option C is the safest. Option B has a moderate level of risk associated with it.
-Refer to the scenario above.Which investment option will a risk-neutral individual choose?

• A) He will choose to invest in Option A.
• B) He will choose to invest in Option B.
• C) He will choose to invest in Option C.
• D) He will be indifferent to investing in any of the three options.

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