Which of the Following Projects Would a Risk-Averse Investor Choose

question 14

Multiple Choice

Which of the following projects would a risk-averse investor choose?

• A) an ENPV of $2 million and a standard deviation of $50,000.
• B) an ENPV of $2 million and a standard deviation of $200,000.
• C) an ENPV of $2 million and a standard deviation of $400,000.
• D) an ENPV of $1 million and a standard deviation of $200,000.
• E) an ENPV of $3 million and a standard deviation of $2,500,000.

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Definitions:

Bertha Pappenheim

A key figure in the history of mental health treatment, known as the famous case "Anna O." in the early studies of psychoanalysis.

Psychoanalysis

A method of exploring the mind and treating mental disorders by interpreting the interaction between conscious and unconscious elements.

Josef Breuer

An Austrian physician whose work in the early study of the mind laid the foundation for psychoanalysis.

Hypnosis

A trance-like state of focused attention and increased suggestibility, often used for therapeutic purposes to treat various psychological and physical conditions.