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Basic Question 3 of 16
When we say that investors are risk-averse, this means that ______
B. in general, they will invest their savings in a money market portfolio.
C. given a choice between two assets with equal rates of return, they will select the asset with the lower level of risk.
A. when selecting a portfolio, they will select investments that offer a capital guarantee.
B. in general, they will invest their savings in a money market portfolio.
C. given a choice between two assets with equal rates of return, they will select the asset with the lower level of risk.
User Contributed Comments 2
| User | Comment |
|---|---|
| EEEEvia | Why not A? |
| funshining | Risk management first before considering the return of investment. |
I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt
Learning Outcome Statements
explain risk aversion and its implications for portfolio selection
CFA® 2024 Level I Curriculum, Volume 2, Module 1.