When Considering Different Investments, a Risk-Averse Investor Is Most Likely

question 45

Multiple Choice

When considering different investments, a risk-averse investor is most likely to focus on purchasing:

• A)Investments with the greatest spread in the expected rate of return
• B)Investments that offer the lowest standard deviation in the investments' expected rates of return for any given expected rate of return
• C)Only risk-free investments
• D)Investments with the lowest risk premium, regardless of the expected rate of return

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Definitions:

Decisions

involve choosing between two or more options or courses of action.

Obedience

A form of social influence where individuals follow direct commands from an authority figure.

Heart Condition

Any of various disorders affecting the heart's function, which can range from congenital defects to acquired diseases such as coronary artery disease.

"Teachers"

"Teachers" are individuals who educate or instruct others, often in academic contexts, but also in any scenario where knowledge, skills, or values are imparted.