An Investor with High Risk Aversion Will Likely Require Which

question 61

Multiple Choice

An investor with high risk aversion will likely require which of the following risk return combinations?

• A) Expected return = 12%, Historical standard deviation = 17%
• B) Expected return = 14%, Historical standard deviation = 19%
• C) Expected return = 16%, Historical standard deviation = 21%
• D) Expected return = 18%, Historical standard deviation = 23%

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Definitions:

Custody

The protective care or guardianship of someone or something, often referring to the control over assets or minors.

Bonding Employees

A fiduciary process where employees are covered by a bond to protect the employer against losses from the acts of fraud or dishonesty by the employees.

Collusion

An unethical or illegal agreement between two or more parties to limit competition, manipulate markets, or otherwise conduct deceptive practices.

Cash Registers

Machines or devices used by businesses to manage cash transactions, track sales, and store money.