Multiple Choice
Scenario: Three investment options are available in a market. All three options provide the same expected rate of return but have different levels of risk associated with them. Investing in Option A is the riskiest, while investing in Option C is the safest. Option B has a moderate level of risk associated with it.
-Refer to the scenario above.Which investment option will a risk-neutral individual choose?
A) He will choose to invest in Option A.
B) He will choose to invest in Option B.
C) He will choose to invest in Option C.
D) He will be indifferent to investing in any of the three options.
Correct Answer:
Verified
Correct Answer:
Verified
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