Which of the following statements is(are) false? I) Risk-averse investors reject investments that are fair games.II) Risk-neutral investors judge risky investments only by the expected returns.III) Risk-averse investors judge investments only by their riskiness.IV) Risk-loving investors will not engage in fair games.
A) I only
B) II only
C) I and II only
D) II and III only
E) III and IV only

Question

Quizplus · Accepted Answer

III is false because risk-averse investors consider both risk and return, not just riskiness. IV is false because risk-loving investors may engage in fair games for the thrill or potential for gain, despite the risk.

Which of the Following Statements Is(are) False? I) Risk-Averse Investors