Question

The best definition of risk averse is Group of answer choices none of the above. never...

The best definition of risk averse is

Group of answer choices

none of the above.

never taking risks.

being compensated for taking risks.

only taking small risks.

Homework Answers

Answer #1

Risk Averse Investor is an investor who knows the risk and return and prefers to take minimal risk then taking unknown high risk even if it promises high returns. He will always go for the small risks with known returns. He preferes to preserve the Investment rather than earning .

Therefore Option D is correct. only taking small risks

NOTE: The answer to your question has been given below/above. If there is any query regarding the answer, please ask in the comment section. If you find the answer helpful, do upvote. Help us help you.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
To say that investors are risk-averse means that Group of answer choices they hope for high...
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.
The best definition of outliers is that they are: Group of answer choices Unusual scores that...
The best definition of outliers is that they are: Group of answer choices Unusual scores that should be examined carefully Scores that do not belong with the rest of the data and should be deleted Values that are not representative of the population under study Values that interfere with effective data analysis
The risk of a completely diversified portfolio ______________. Group of answer choices can be regarded as...
The risk of a completely diversified portfolio ______________. Group of answer choices can be regarded as the standard deviation of the market portfolio has only systematic risk and no unsystematic risk can be regarded as the variance of the market portfolio has only unsystematic risk and no systematic risk A portfolio of two perfectly _________ stocks has no diversification effect Group of answer choices uncorrelated positively correlated negatively correlated risk-free
The term “risk reduction” refers to: Group of answer choices the financial payoff from an insurance...
The term “risk reduction” refers to: Group of answer choices the financial payoff from an insurance policy in the event of a loss. the reduction in utility experienced by risk-averse individuals when they purchase insurance. the reduction in Medicare payments that results from poor scores on patient risk measures. actions that reduce the likelihood that an insured event occurs.
Which of the following statements is CORRECT? Group of answer choices The risk that cashflows will...
Which of the following statements is CORRECT? Group of answer choices The risk that cashflows will have to be reinvested in the future at lower rates, pushes investors to require higher rates from shorter term bonds, compared to similar longer term bonds. The longer the time to maturity, the greater the change in the value of a bond in response to a given change in interest rates. All of the above are correct. None of the above is correct.
Which of the following best describes why individuals are risk-averse? A. individuals enjoy volatility. B. individuals...
Which of the following best describes why individuals are risk-averse? A. individuals enjoy volatility. B. individuals experience diminishing marginal utility of wealth. C. individuals wish to maximize total consumption at all costs. D. none of these. Individuals are generally not risk-averse.
The primary purpose of portfolio diversification is to: Group of answer choices A.increase returns and risks....
The primary purpose of portfolio diversification is to: Group of answer choices A.increase returns and risks. B.eliminate all risks. C.eliminate firm-specific risk. D.eliminate systematic risk. E.lower both returns and risks.
Regarding complementary enterprises, pick the best answer below: Group of answer choices In a two enterprise...
Regarding complementary enterprises, pick the best answer below: Group of answer choices In a two enterprise space, increasing production of one enterprise will increase the production of the other enterprise (at least over some range) In a two enterprise space, increasing production of one enterprise will decrease the production of the other (at least over some or all of the range) In a two enterprise space, increasing production of one enterprise will not affect the production of the other (at...
Which of the following is not an assumption of the z test? Group of answer choices...
Which of the following is not an assumption of the z test? Group of answer choices The dependent variable is measured as a scale variable. Participants are randomly selected. A one-tailed test is being used. All of the options listed above are assumptions of the z test. None of the options listed above are assumptions of the z test.
According to Adam Smith, trade based on self interest: Group of answer choices will never benefit...
According to Adam Smith, trade based on self interest: Group of answer choices will never benefit either party will benefit both parties is socially destructive will not occur under laissez faire
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT