Which Investor Attaches Equal Utility to Each Increment in Wealth

question 61

Multiple Choice

Which investor attaches equal utility to each increment in wealth?

• A)A risk-seeking investor.
• B)A risk-averse investor.
• C)A well diversified investor.
• D)A risk-neutral investor.

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Definitions:

Voting Power

The ability of a shareholder or group of shareholders to influence the decisions of a company, often exercised through voting on corporate actions or board elections.

EAFE Index

A stock index that represents the performance of major equity markets in Europe, Australasia, and the Far East.

Dollar-Denominated Deposit

A deposit at a bank or financial institution available in U.S. dollars, regardless of the location of the bank or the nationality of the depositor.

Eurodollars

U.S. dollar-denominated deposits held in banks outside the United States, not under jurisdiction of the Federal Reserve.