Risk-neutral savers care
A)only about expected returns and not about the variability of those returns.
B)only about the variability of returns and not about their expected value.
C)about both expected returns and the variability of those returns.
D)about neither expected returns nor about the variability of those returns.

Question

Quizplus · Accepted Answer

Risk-neutral savers are indifferent to the risk (variability of returns) and make decisions based solely on the expected returns of their investments.

Risk-Neutral Savers Care