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Basic Question 6 of 16

The risk-aversion coefficient in the utility function is higher for ______.

A. more risk-averse individuals
B. more risky investments
C. investments with higher expected returns

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I used your notes and passed ... highly recommended!
Lauren

Lauren

Learning Outcome Statements

explain risk aversion and its implications for portfolio selection

CFA® 2025 Level I Curriculum, Volume 2, Module 1.