A risk-averse individual _____.
A)prefers a sure return to an uncertain prospect generating the same expected return
B)is indifferent between a sure return and an uncertain prospect generating the same expected return
C)will forgo a sure return in favor of an uncertain prospect generating the same expected return
D)will avoid all risky investments no matter what the return

Question

Quizplus · Accepted Answer

A risk-averse individual prefers a sure return to an uncertain prospect generating the same expected return because they are averse to risk and therefore prioritize avoiding potential losses over potential gains.

A Risk-Averse Individual _____