Quiz Ch 08 – T/F Risk Aversion and Investor Preferences
Fundamentals of Financial Management, Concise
Brigham and Houston
09th Edition
True or false: Risk-averse individuals favor certainty over risk. Marketwide risk aversion leads to investors accepting lower returns for less risky securities. Varied risk aversion levels result in more risk-averse investors holding lower-risk, lower-expected return securities compared to those with higher risk tolerance.