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:

Eupnea

Normal, unlabored breathing often associated with a state of rest.

Anxious Patient

A patient experiencing anxiety or nervousness, often requiring special considerations in medical settings.

Pulse

The rhythmic expansion and contraction of an artery as blood is forced through it, typically checked to measure the heart rate.

Respiratory Rate

The number of breaths a person takes per minute, which is an essential vital sign in health assessments.