Multiple Choice
Which of the following is NOT a correct statement?
A) Risk-averse investors will not willingly undertake fair gambles.
B) Risk-averse investors prefer to gamble on a risky situation where there is an equal probability of winning or losing the same amount of money.
C) Risk-averse investors require a risk premium to bear risk; the more risk averse they are, the higher the risk premium they require.
D) Risk-averse investors are willing to pay an insurance premium to get out of a risky situation.
Correct Answer:
Verified
Correct Answer:
Verified
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