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Risk Is the Possibility That Actual Outcomes Will Vary from What

Question 3

Multiple Choice
Risk is the possibility that actual outcomes will vary from what was expected when the asset was purchased. If investors require a higher rate of return for undertaking more risk, the underlying assumption is that investors are:

Risk is the possibility that actual outcomes will vary from what was expected when the asset was purchased. If investors require a higher rate of return for undertaking more risk, the underlying assumption is that investors are:


A) risk neutral
B) risk averse
C) risk taking
D) hedging risk

Correct Answer:

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