In finance, we assume that investors are generally
A) neutral to risk.
B) averse to risk.
C) fond of risk.
D) none of the above.

Question

Quizplus · Accepted Answer

The majority of investors are risk-averse, meaning they prefer lower risk investments or a higher expected return for taking on more risk. This is a fundamental concept in finance known as the risk-return tradeoff. While some investors may be fond of risk, they are in the minority. Therefore, option B is the best choice.

In Finance, We Assume That Investors Are Generally