Most investors are risk averse,which means:
A)they will assume more risk only if they are compensated by higher expected return.
B)they will always invest in the investment with the lowest possible risk.
C)they actively seek to minimize their risks.
D)they avoid the stock market due to the high degree of risk.

Question

Quizplus · Accepted Answer

Risk averse investors are not necessarily risk-avoidant, but rather they require higher expected returns in order to take on higher levels of risk. They actively seek to find a balance between the level of risk and the expected return on an investment. Therefore, choice A is the best option.

Most Investors Are Risk Averse,which Means