Multiple Choice
Suppose there's an 80% chance of a stock rising by 20% and a 20% chance of it falling by 40%. Which type of investor would prefer an investment with a guaranteed return of 5%?
A) risk loving investor
B) risk neutral investor
C) risk averse investor
D) risk is not relevant in this example
Correct Answer:
Verified
Correct Answer:
Verified
Q8: The supply curve for bonds would be
Q27: If there is an excess supply of
Q40: The equilibrium real interest rate in Belgium
Q51: If the expected gains on stocks rise,
Q53: A portfolio is a<br>A)brokerage house specializing in
Q66: In recent decades,the United States<br>A) was essentially
Q74: An increase in expected inflation results in<br>A)
Q81: Why do CDs have lower rates of
Q87: If bond investors think they lack enough
Q97: Given that most investors tend to be