Which statement best describes the attitude of investors towards risk?
A)Investors may behave as though they are risk seekers for small investments.
B)Investors behave as though they are risk averse for investments of significant size.
C)For a risk-averse investor,the standard deviation of the return distribution is a relevant measure of risk.
D)All of the given answers.

Question

Quizplus · Accepted Answer

Each statement accurately reflects different aspects of investor attitudes towards risk. A) highlights that investors might be more willing to take risks with smaller investments. B) suggests that as the investment size increases, investors tend to become more risk-averse. C) points out that for risk-averse investors, the standard deviation (a measure of volatility) is relevant in assessing risk.

Which Statement Best Describes the Attitude of Investors Towards Risk