Question

To say that investors are risk-averse means that

Group of answer choices

they hope for high returns from high-risk investments, but generally expect low returns.

they will invest only in safe investments such as insured savings accounts and government securities.

they require higher potential returns as compensation for accepting higher risk.

when given a choice between risky investments and safe ones, they will buy only safe investments.

Answer 1

Investors who are risk averse are investors who prefer preservation
of their capital or returns that are just above inflation.
In addition, investors who are risk averse will not invest in investments
that have a potential to give a higher than average return because those
investments also have a downside risk.
when given a choice between risky investments and safe ones, they will buy only safe investments.