CFA Practice Question

There are 294 practice questions for this study session.

CFA Practice Question

A risk-averse investor is most accurately described by which of the following statements? A risk-averse investor will ______
A. choose the lowest-risk alternative.
B. choose the lowest-risk alternative as long as it has a modest expected return.
C. consider higher risk alternatives only if they offer an expected return high enough to compensate for the additional risk.
Explanation: A risk-averse investor requires additional expected return as compensation for additional risk.

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