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

question 65

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) They only care about the rate of return, and they accept investments that are fair games.

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Definitions:

Sexual Passion

Intense feelings of attraction, desire, and sexual longing toward a person.

Gambling Addiction

A disorder characterized by the uncontrollable urge to gamble, leading to significant personal, social, and financial problems.

Conditional Positive Regard

Acceptance and love that are contingent upon a person behaving in certain ways or meeting certain conditions.

Carl Rogers

An influential American psychologist who founded the humanistic approach to psychology and developed client-centered therapy.