Multiple Choice
When comparing two investments, a risk averse investor will ____.
A) always choose the lower risk investment if the expected return is the same for both investments
B) always choose the lower risk investment without considering expected return
C) always choose the investment with the lower expected return
D) always choose the investment with the higher expected return
Correct Answer:

Verified
Correct Answer:
Verified
Q18: The expected return on a stock is:<br>A)based
Q19: Investors don't diversify entirely with negative beta
Q20: The underlying principles of portfolio theory include:<br>A)diversifying
Q21: Risk is:<br>A)the probability that return will be
Q22: Discrete variables can take only specific values.
Q24: A rational investor will make an investment
Q25: Risk in finance is defined as the
Q26: You have $350,000 to invest and have
Q27: An investment portfolio is (are):<br>A)found in an
Q28: A well-diversified portfolio will act to reduce