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A good definition of risk aversion for investors is as follows. Multiple Choice Investors will always choose the security with the lowest coefficient of variation
A good definition of risk aversion for investors is as follows. Multiple Choice Investors will always choose the security with the lowest coefficient of variation Investors will avoid risk because it means uncertain retum. Investors will only take on risk for a sufficient amount of additional expected return Investors will be risk averse only when market volatility is high
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