We Routinely Assume That Investors Are Risk-Averse Return-Seekers; I

question 60

Essay

We routinely assume that investors are risk-averse return-seekers; i.e.,they like returns and dislike risk.If so,why do we contend that only systematic risk and not total risk is important?

---

Definitions:

Keep Source Formatting

A feature in software applications that maintains the original formatting of copied text or objects when they are pasted into a new location.

Embed Workbook

A feature allowing users to insert a workbook into another document or application, maintaining live links to the original data.

Linked Objects

Elements in a document that are connected to external sources, so that changes in the source reflect in the document automatically.

Link Source

The original location or path from where data or content is derived, especially in the context of linking documents or web pages.