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The concept of being risk-averse means: investors dont want to take on any risk. investors would usually prefer investments with high standard deviations and a

The concept of being risk-averse means:

investors dont want to take on any risk.

investors would usually prefer investments with high standard deviations and a greater opportunity for gain.

that the greater the risk, the lower the expected return must be.

that for a given situation, investors would prefer relative certainty to uncertainty, and the greater the risk, the higher the expected return must be.

which one is correct?

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