ЁЯУв Too many exams? DonтАЩt know which one suits you best? Book Your Free Expert ЁЯСЙ call Now!

    Question

    Which of the following best describes a risk averse

    investor?
    A An investor who assumes more risk only if compensated by higher expected return Correct Answer Incorrect Answer
    B An investor who chooses preservation of capital over potential high returns Correct Answer Incorrect Answer
    C An investor who chooses potential higher return over preservation of capital Correct Answer Incorrect Answer
    D An investor who avoids low risk assets for unknown risks Correct Answer Incorrect Answer
    E All of the above Correct Answer Incorrect Answer

    Solution

    A┬а risk averse ┬аinvestor is an investor who prefers lower returns with known risks rather than higher returns with unknown risks. The term risk-averse describes┬а the investor who chooses the preservation of capital over the potential for a higher-than-average return

    Practice Next
    More Alternate Sources of Finance Questions
    ask-question