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Risk Is the Possibility That Actual Outcomes Will Vary from What

Question 3

Multiple Choice
Risk is the possibility that actual outcomes will vary from what was expected when the asset was purchased. If investors require a higher rate of return for undertaking more risk, the underlying assumption is that investors are:
A) risk neutral
B) risk averse
C) risk taking
D) hedging risk

Risk is the possibility that actual outcomes will vary from what was expected when the asset was purchased. If investors require a higher rate of return for undertaking more risk, the underlying assumption is that investors are:


A) risk neutral
B) risk averse
C) risk taking
D) hedging risk

Correct Answer:

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