A rational person maximizes
A) risk.
B) return.
C) expected utility.
D) return variance.

Name: A rational person maximizes A) risk. B) return. C) expected utility. D) return variance.
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Question

Quizplus · Accepted Answer

Rational persons aim to maximize their expected utility, which takes into account both the potential return and risk associated with an investment. Therefore, options A, B, and D, which focus on only one aspect of an investment, are not the best choices.

A Rational Person Maximizes