When comparing two investments, a risk averse investor will ____.
A)always choose the lower risk investment if the expected return is the same for both investments
B)always choose the lower risk investment without considering expected return
C)always choose the investment with the lower expected return
D)always choose the investment with the higher expected return

Question

Quizplus · Accepted Answer

A risk averse investor will always choose the investment with the lower risk if the expected return is the same for both investments. This is because they are less willing to take on risk and prefer a more predictable outcome.

When Comparing Two Investments, a Risk Averse Investor Will ____