If investors were risk averse, they would want to
A) maximize the return they are receiving compared to the standard deviation of the returns on the particular security.
B) invest in technology stocks.
C) minimize risk, i.e., standard deviation, for the amount of return they are receiving on an investment.
D) seek the highest return they could find.

Question

Quizplus · Accepted Answer

Risk-averse investors prioritize minimizing risk (standard deviation) for a given level of return.

If Investors Were Risk Averse, They Would Want to