Because Most Investors Are Risk Averse

question 70

Multiple Choice

Because most investors are risk averse,

• A)the riskier the investment, the more the investor will pay for it.
• B)the riskier the investment, the less compensation the investor requires.
• C)only financial institutions invest in risky assets.
• D)they will require a higher rate of return for a riskier investment.

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Definitions:

Black Man

A term used to describe a male of African descent or African American heritage, often contextualized within discussions of race and social issues in society.

Woodrow Wilson

The 28th President of the United States (1913–1921), known for his role in leading the nation through World War I and advocating for the League of Nations.

Southern Born Democrat

Refers to a Democrat party member in the United States who originates from the Southern region, often associated with a specific set of political and social views.

Birth Of A Nation

A 1915 silent film by D.W. Griffith, widely criticized for its portrayal of African Americans and its glorification of the Ku Klux Klan.