A investor that is given a choice between two investments with the same expected return and who always prefers the less risky one is said to be:
A) risk-averse.
B) a risk seeker.
C) risk-neutral.
D) risk indifferent.
E) risk efficient.

Question

Quizplus · Accepted Answer

A risk-averse investor always prefers the less risky investment option even if both options have the same expected return. Therefore, the best choice for this investor would be the less risky option.

A Investor That Is Given a Choice Between Two Investments