Given That Most Investors Tend to Be Risk Averse

question 97

Multiple Choice

Given that most investors tend to be risk averse

• A) no one buys risky assets.
• B) there's a trade-off between risk and return.
• C) low risk assets provide the best return.
• D) it must be a superior strategy compared to one that is risk loving.

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Definitions:

Suprachiasmatic Nucleus

A tiny region in the brain's hypothalamus responsible for controlling circadian rhythms, essentially acting as the body's internal clock.

Biological Rhythms

Natural cycles of change in bodily functions or activities, such as the circadian rhythm that governs sleep-wake cycles.

Cocaine

A powerful stimulant drug derived from the leaves of the coca plant, which can cause intense euphoria but also significant physical and psychological harm.

Coca Plant

A plant native to South America, known scientifically as Erythroxylum coca, from which cocaine is derived.