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Risk aversion implies that: an investor will tolerate extra risk if it is expected that the return will compensate them for bearing it. an investor

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Risk aversion implies that: an investor will tolerate extra risk if it is expected that the return will compensate them for bearing it. an investor will prefer a higher expected return than a lower expected return. an investor will be indifferent to the level of risk providing that the expected return is identical. an investor will refuse to bear any risk at all

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