A(n) Blank______ investor would prefer to avoid gambles with zero expected return. Multiple choice question. risk-taker risk-averse risk-neutral active
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A(n) Blank______ investor would prefer to avoid gambles with zero expected return.
risk-taker
risk-averse
risk-neutral
active
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- Which of the following statements correctly describe characteristics of a risk averse investor? Group of answer choices A. A risk-averse investor may be willing to give up some expected return in order to be exposed to a higher level of risk. B. Given a choice, a risk-averse investor will always choose the investment with the lower level of risk when deciding between two investments offering different levels of expected return. C. More than one of the other statements is correct. D. A risk-averse investor will demand compensation in the form of higher expected returns in order to take on investments with higher risk.What does risk tolerance measure in the context of investment strategy? This is a multiple choice question. Once you have selected an option, select the submit button below The ability to take on higher risks for potentially higher returns The willingness to accept losses in the short term The capacity to afford potential losses The preference for low-risk, low-return investmentsAll things remaining equal, a risk averse investor who is less risk tolerant would prefer an investment with what beta? Select one: a. High b. Beta is not a relevant consideration for this investor c. Low d. Moderate
- List which of the following statement(s) concerning risk are correct? 1. Nondiversifiable risk is measured by beta. II. The risk premium increases as diversifiable risk increases. III. Systematic risk is another name for nondiversifiable risk. IV. Diversifiable risks are market risks you cannot avoid.A risk-loving person (select all that applies) Group of answer choices a) will never make an investment with a risk-free payoff. b) has a convex utility function of income. c) has a concave utility function of income. d) will always choose the alternative with the largest risk. e) has increasing marginal utility of income.What type of risk should the rational (aka not stupid) investor be concerned with? Systematic risk (the stuff we can't squeeze out) which is measured by BETA Unsystematic risk (the stuff we can squeeze out) which we don't measure because we can squeeze it out Total risk which is what a nondiversified investor would face
- What would the SML look like if investors werecompletely indifferent to risk—that is, had zero risk aversion?After combining a riskfree asset with the efficient frontier of risky portfolios, you no longer need to know an investor's preferences over risk and return to identify the risky portfolio they should hold. Group of answer choices True FalseAn investment with a high return is likely to be high riskA. TrueB. False
- Which of the following is true of a risk-averse investor? Multiple choice question. A risk-averse investor invests only in risk-free assets, such as T-bills. A risk-averse investor avoids investments that have zero expected return. correct A risk-averse investor invests in securities that have zero total risk. A risk-averse investor invests in securities that have zero systematic risk.Which of the following is true of a risk-averse investor? Multiple choice question. A risk-averse investor invests only in risk-free assets, such as T-bills. A risk-averse investor avoids investments that have zero expected return. A risk-averse investor invests in securities that have zero total risk. A risk-averse investor invests in securities that have zero systematic risk.You are a risk-averse investor. Would you therefore invest in financial assets that have a high or a low beta (b) coefficient? How high or low the beta coefficient should be in this case?