Risk Aversion Is the Behavior Exhibited by Investors Who Require

question 209

Multiple Choice

Risk aversion is the behavior exhibited by investors who require ________.

• A)an increase in return,for a given decrease in risk
• B)an increase in return,for a given increase in risk
• C)no changes in return,for a given increase in risk
• D)decrease in return,for a given increase in risk

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Definitions:

Income

Monetary gains received consistently from either occupational efforts or investments.

Flowers

The reproductive structure found in flowering plants, responsible for the production of seeds and propagation of the species.

Factors Of Production

The resources used in the production of goods and services, traditionally categorized as land, labor, and capital.

Income

The compensation gathered, often at regular intervals, from work activities or investment outcomes.