Which One of the Following Is a Better Argument Than

question 4

Multiple Choice

Which one of the following is a better argument than the three against the risk aversion assumption of the Markowitz theory?

• A) Few people would turn down an extra dollar offered to them.
• B) Many instances can be cited of behavior inconsistent with risk aversion.
• C) Risk averse investors have more steeply sloped indifference curves.
• D) Investor behavior is complicated and not easily generalized.

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