Figure 5.4.2
-Refer to Figure 5.4.2 above. In this figure, there are two investors, A nd B. Which investor is more risk averse?
A) A
B) B
C) None. Both investors are risk neutral.
D) None. Both investors are risk loving.

Question

Figure 5.4.2
-Refer to Figure 5.4.2 above. In this figure, there are two investors, A nd B. Which investor is more risk averse?
A) A 
B) B 
C) None. Both investors are risk neutral. 
D) None. Both investors are risk loving.

Quizplus · Accepted Answer

Investor A's indifference curve is steeper than investor B's, indicating that they are more risk averse.

Figure 5.4.2 -Refer to Figure 5.4.2 Above. in This Figure, There Are