When considering different investments, a risk-averse investor is most likely to focus on purchasing:
A. investments that offer the lowest standard deviation in the investments' expected rates of return for any given expected rate of return.
B. investments with the lowest risk premium, regardless of the expected rate of return.
C. investments with the greatest spread in the expected rate of return.
D. only risk-free investments.
Answer: A
You might also like to view...
The consumption of fixed capital in each year's production is called ________.
A. net investment B. depreciation C. indirect business taxes D. inventory reduction
Which of the following best describes a "bubble"?
A) when the price of an asset reaches a new high B) an unsustainable increase in the price of a class of assets C) rapid increases in inflation D) when bond prices rise more quickly than stock prices
Which of the following best represents the effects of an increase in the price of coffee, other things being equal?
a. A leftward shift in the demand curve for coffee. b. A downward movement along the demand curve for coffee. c. A rightward shift in the demand curve for coffee. d. An upward movement along the demand curve for coffee.
An increase in wages in the public sector is always accompanied by an increase in labor productivity
a. True b. False Indicate whether the statement is true or false