When an investor prefers a portfolio that is diverse,has a smaller return than an alternative,and has a much smaller variance then the investor must be:

Question

Quizplus · Accepted Answer

An investor who prefers a portfolio that is diverse, has a smaller return than an alternative, and has a much smaller variance is showing risk-averse behavior. As they are willing to accept a lower return for a lower level of risk, it shows that they are risk-averse.

When an Investor Prefers a Portfolio That Is Diverse,has a Smaller