What is meant by the statement that risk-averse investors exhibit diminishing marginal utility of wealth? Why does

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What is meant by the statement that "risk-averse investors exhibit diminishing marginal utility of wealth"? Why does diminishing marginal utility cause an investor to refuse to accept a "fair bet"?

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Fundamentals of Investments

ISBN: 978-0132926171

3rd edition

Authors: Gordon J. Alexander, William F. Sharpe, Jeffery V. Bailey

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Question Posted: Mar 16, 2016 02:49 AM

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What is meant by the statement that risk-averse investors exhibit diminishing marginal utility of wealth? Why does

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Diminishing marginal utility of wealth means that an investor deri...View the full answer

Fundamentals of Investments

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