Examlex
Which of the following statements is TRUE?
Risk-averse Investors
Investors who prefer to minimize uncertainty and potential loss in their investment choices, often opting for safer, more predictable investments.
Optimal Risky Portfolio
The combination of investments that provides the highest expected return for a given level of risk or the lowest risk for a given level of expected return.
Expected Utility
A theory in economics that assesses the utility or satisfaction an agent expects to receive from different outcomes, taking into account their risk preferences.
Less Risk-averse Investors
Less risk-averse investors are those willing to take on greater risks for the potential of higher returns, as opposed to being risk-averse who prefer safer, lower-return investments.
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