Savers who are risk-averse
A)care only about expected returns.
B)care only about the variability of returns.
C)care about both expected returns and the variability of returns.
D)always prefer an investment with a higher expected return to one with a lower expected return.

Question

Quizplus · Accepted Answer

Savers who are risk-averse care about both expected returns and the variability of returns. They want to choose an investment that offers both a reasonable expected return and low variability in returns, so that they can minimize the possibility of losing money. They are willing to accept lower expected returns if it means they can reduce the risk of losses.

Savers Who Are Risk-Averse