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Which of the following investments would be most attractive to a risk-averse investor? A risk-averse investor would be indifferent between investments B and C and
Which of the following investments would be most attractive to a risk-averse investor? A risk-averse investor would be indifferent between investments B and C and prefer them to investment A because they have a higher expected value. A risk-averse investor will prefer investment B because it has a higher expected return than investment A for the same level of risk and the same expected return as investment C for a lower level of risk. A risk-averse investor will prefer investment C because it has the highest expected value and standard deviation. A risk-averse investor would prefer investment A because it has the lowest expected value. How would your answer differ if the investor were described as risk-neutral? A risk-neutral investor will prefer investment C because it has the highest expected value and standard deviation. A risk-neutral investor would be indifferent between investments B and C and prefer them to investment A because they have a higher expected value. A risk-neutral investor would prefer investment A because it has the lowest expected value. A risk-neutral investor will prefer investment B because it has a higher expected return than investment A for the same level of risk and the same expected return as investment C for a lower level of risk
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