If we are risk-averse, a risky investment with an 8% return will be preferred over a 10% risk-free investment.

Name: If we are risk-averse, a risky investment with an 8% return will be preferred over a 10% risk-free investment.
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If we are risk-averse, we prefer investments with lower risk, even if they offer lower returns. The 10% risk-free investment would be preferred over the risky investment with an 8% return.

If We Are Risk-Averse, a Risky Investment with an 8