You are thinking of adding one of two investments to an already well-diversified portfolio. If you are a risk-averse investor
A)security A is the better choice
B)security B is the better choice
C)either security would be acceptable
D)cannot be determined with information given

Question

You are thinking of adding one of two investments to an already well-diversified portfolio.  If you are a risk-averse investor
A)security A is the better choice 
B)security B is the better choice 
C)either security would be acceptable 
D)cannot be determined with information given

Quizplus · Accepted Answer

As a risk-averse investor, you would want to choose a safer investment option. Without any further information about the specific investments, we can assume that security A is the safer choice as it would provide a more balanced risk-return tradeoff compared to security B.

You Are Thinking of Adding One of Two Investments to an Already