A ____ investor will always choose the portfolio with the smaller standard deviation.
A) risk-averse
B) risk-seeking
C) risk-neutral
D) marginal utility

Question

Quizplus · Accepted Answer

A risk-averse investor is one who prefers to avoid risk, or uncertainty, when investing. As such, they will always choose the portfolio (among multiple options) with the smallest standard deviation, as this indicates a smaller degree of volatility and uncertainty in returns.

A ____ Investor Will Always Choose the Portfolio with the Smaller