Which of the following does not describe risk aversion?
A)Investors prefer lower risk when returns are equal.
B)Investors expect higher returns when risk increases.
C)Investors try to avoid risk at all costs.
D)All of the above describe risk aversion.
E)None of the above describes risk aversion.

Question

Quizplus · Accepted Answer

Risk aversion does not mean avoiding risk at all costs; rather, it indicates a preference for lower risk when returns are equal and an expectation of higher returns for taking on more risk.

Which of the Following Does Not Describe Risk Aversion