Given the following information,which investment(s)would risk-averse investors prefer if the risk-free rate is 5 percent?

A) I only
B) II only
C) III only
D) I and II only

Question

Given the following information,which investment(s)would risk-averse investors prefer if the risk-free rate is 5 percent?
  
A) I only 
B) II only 
C) III only 
D) I and II only

Quizplus · Accepted Answer

11ea8229_34c1_d690_bbd8_bf1331a7998b_TB1726_00 A risk-averse investor prefers investment I because to be induced to enter a risky situation,(s)he needs a risk premium.

Given the Following Information,which Investment(s)would Risk-Averse Investors Prefer If the Risk-Free