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When Considering Different Investments, a Risk-Averse Investor Is Most Likely

Question 45

Multiple Choice

When considering different investments, a risk-averse investor is most likely to focus on purchasing:


A) Investments with the greatest spread in the expected rate of return
B) Investments that offer the lowest standard deviation in the investments' expected rates of return for any given expected rate of return
C) Only risk-free investments
D) Investments with the lowest risk premium, regardless of the expected rate of return

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