The Principle of Risk Aversion Can Best Be Described As

question 57

Multiple Choice

The principle of risk aversion can best be described as:

• A)the observation that investors are unwilling to acquire very risky securities regardless of their risk premiums.
• B)the hypothesis that people always prefer investments with less risk to those with more risk if the expected returns are equal.
• C)the observation that risky securities usually offer unattractive expected returns when the possibility of loss is considered.
• D)All of the above