Of any two gambles, no matter what their expected returns, a risk averter will choose the one with the smaller variance.

Name: Of any two gambles, no matter what their expected returns, a risk averter will choose the one with the smaller variance.
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Question

Quizplus · Accepted Answer

A risk averter prioritizes lower risk but does not always choose the gamble with the smaller variance if the expected return significantly compensates for the higher risk. The decision depends on their risk-return trade-off preferences.

Of Any Two Gambles, No Matter What Their Expected Returns