When the Markowitz model assumes that most investors are considered to be "risk averse",this really means that they:
A)will not take a "fair gamble"
B)will take a "fair gamble"
C)will take a "fair gamble" fifty percent of the time
D)will never assume investment risk

Question

Quizplus · Accepted Answer

When investors are considered to be "risk averse," it means that they generally prefer investments with lower risk and lower returns rather than higher risk and higher returns. They are less likely to take a "fair gamble," which involves equal chances of gaining or losing, and are more likely to prioritize the preservation of their capital.

When the Markowitz Model Assumes That Most Investors Are Considered