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Suppose Lena wants to make a choice among the following three mutually exclusive retirement funds. Fund E(R) SD(R) A 0.05 0.3 B 0.05 0.2 C
Suppose Lena wants to make a choice among the following three mutually exclusive retirement funds.
Fund | E(R) | SD(R) |
A | 0.05 | 0.3 |
B | 0.05 | 0.2 |
C | 0.33 | 0.3 |
If Lena is a _____1_____ investor, she will choose fund A over C.
If Lena is a _____2_____ investor, she will choose fund B over A.
a. | 1. non-satiated, 2. risk-seeking | |
b. | 1. non-satiated, 2. risk-averse | |
c. | 1. risk-seeking, 2. non-satiated | |
d. | 1. risk-averse, 2. non-satiated | |
e. | none of the above |
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