Would a risk averter ever select the riskier of two strategies? A) no B) yes, if

Question

Would a risk averter ever select the riskier of two strategies? A) no B) yes, if the larger std dev for one alternative offsets the lower expected value on second alternative C) yes, if the larger expected value for one alternative offsets the lower Std dev on the second alternative D) yes, if the larger expected value for one alternative offsets the larger std dev on the second alternative Would a risk averter ever select the riskier of two strategies? A) no B) yes, if the larger std dev for one alternative offsets the lower expected value on second alternative C) yes, if the larger expected value for one alternative offsets the lower Std dev on the second alternative D) yes, if the larger expected value for one alternative offsets the larger std dev on the second alternative A) no B) yes, if the larger std dev for one alternative offsets the lower expected value on second alternative C) yes, if the larger expected value for one alternative offsets the lower Std dev on the second alternative D) yes, if the larger expected value for one alternative offsets the larger std dev on the second alternative

Explanation / Answer

Would a risk averter ever select the riskier of two strategies?

Risk averse is a description of an investor who, when faced with two investments with a similar expected return (but different risks), will prefer the one with the lower risk.

D) yes, if the larger expected value for one alternative offsets the larger std dev on the second alternative

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