Someone who is risk-averse is likely to:
A) buy a government bond instead of a stock.
B) invest in a start-up company instead of putting her money under her mattress.
C) buy company stock instead of putting money in a savings account.
D) All of these statements are true.

Question

Quizplus · Accepted Answer

A risk-averse person is someone who is uncomfortable with taking risks and prefers safe investments with lower returns. Buying a government bond is a good choice for such a person because it is a low-risk investment with guaranteed returns. The other options involve higher risk, which a risk-averse person would try to avoid.

Someone Who Is Risk-Averse Is Likely To