If the Land Owner Is Risk Averse He Would Choose

question 4

Multiple Choice

If the land owner is risk averse he would choose the action with the lowest Coefficient of Variation (CV) . Which of the following is true?

• A) The CV is lower for building townhouses and condominiums.
• B) The CV is lower for building an active retirement community.
• C) Even if the land owner is risk averse, the CV leads to the same choice as the expected value approach.
• D) The CV is higher for building townhouses and condominiums, and even if the land owner is risk averse, the CV leads to the same choice as the expected value approach.
• E) The CV is lower for building an active retirement community, and even if the land owner is risk averse, the CV leads to the same choice as the expected value approach.

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