Investors are generally assumed to be:

Question

Quizplus · Accepted Answer

It is commonly assumed in finance that investors are risk averse,rational and have unlimited demand (are non-satiated).Risk-averse investors are assumed to dislike increased variance (or volatility)in investment returns.The assumption of rationality requires the investor to rank various alternative investments in a consistent manner,and non-satiation requires that the investor prefers more to less (less to more)of a 'good' ('bad')in any comparison.

Investors Are Generally Assumed to Be