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7.1 Question 1 Which of the following statements about risk-averse investors is most accurate? A risk averse investor A seeks out the investment with minimum

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7.1 Question 1 Which of the following statements about risk-averse investors is most accurate? A risk averse investor A seeks out the investment with minimum risk, while return is not a major consideration B will take additional investment risk if sufficiently compensated for this risk. C avoids participating in global equity markets 7.2 Question 2 Evidence of risk aversion is best illustrated by a risk-return relationship that is A negative B neutral. C positive 7.3 Question 3 With respect to an investor's utility function expressed as U() EV), which of the following values for the measure of risk aversion has the least amount of risk aversion? A-4 B 0 C 4

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