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The Concept of Being Risk Averse Means

Question 5

Multiple Choice

The concept of being risk averse means:


A) for a given situation investors would prefer relative uncertainty to certainty.
B) investors would prefer investments with high standard deviations and greater opportunity for gain.
C) that the lower the volatility the higher the standard deviation must be.
D) that the greater the risk the higher the expected return must be.

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