Individuals may be categorised as risk averse,risk neutral or risk takers.Risk averse individuals will accept a lower rate of return so as to reduce their risk exposure.

Name: Individuals may be categorised as risk averse,risk neutral or risk takers.Risk averse individuals will accept a lower rate of return so as to reduce their risk exposure.
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Question

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An investor who prefers an investment with less risk to another with more risk, provided they offer the same expected return, is risk averse.

Individuals May Be Categorised as Risk Averse,risk Neutral or Risk