Which of the Following Statements Regarding Risk-Averse Investors Is True

question 22

Multiple Choice

Which of the following statements regarding risk-averse investors is true?

• A) They only care about the rate of return.
• B) They accept investments that are fair games.
• C) They only accept risky investments that offer risk premiums over the risk-free rate.
• D) They are willing to accept lower returns and high risk.
• E) a and b.

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