Which best describes risk-averse investors?
A)They require higher rates of return on investments whose returns have low uncertainty.
B)They require higher rates of return on investments whose returns have high uncertainty.
C)They require lower rates of return on investments whose returns have low uncertainty.
D)There is no such thing as a risk-averse investor.

Question

Quizplus · Accepted Answer

Risk-averse investors tend to be more cautious with their investments and prefer to avoid high levels of uncertainty. Therefore, they require higher rates of return on investments whose returns have high uncertainty to compensate them for taking on more risk.

Which Best Describes Risk-Averse Investors