ExamVeda
Login
Home

Case in which average investors risk aversion is greater than slope...

This question belongs to Commerce Financial Management
Financial Management
?

Case in which average investors risk aversion is greater than slope of line and risk premium respectively is

Answer & Solution
Correct Answer: Option A
Case in which average investors risk aversion is greater than slope of line and risk premium respectively is steeper, greater. Risk aversion means that investors will tend to purchase safe assets like highly rated bonds and CDs. Risk-averse individuals seek capital preservation over growth, which may actually be detrimental for those who are younger.
Examveda
Question posted by Examveda
Community

Join the Discussion

No comments yet Be the first to discuss this question.
Keep Learning

Related Questions on Financial Management

Investment is the _______________.
A. net additions made to the nation’s capital stocks B. person’s commitment to buy a flat or house C. employment of funds on assets to earn returns D. employment of funds on goods and services that are used in production process
Financial Management is mainly concerned with ______________.
A. All aspects of acquiring and utilizing financial resources for firms activities B. Arrangement of funds C. Efficient Management of every business D. Profit maximization
The primary goal of the financial management is ____________.
A. to maximize the return B. to minimize the risk C. to maximize the wealth of owners D. to maximize profit
In his traditional role the finance manager is responsible for ___________.
A. proper utilisation of funds B. arrangement of financial resources C. acquiring capital assets of the organization D. efficient management of capital
More Related Questions on Financial Management