a-Explain what is risk aversion

b-If a risk averse consumer has the following choices:

Stock A expected return = 10% , standard deviation (index for risk) = 5

Stock B expected return = 15%, Standard deviation = 8

Stock C expected return = 8%, standard Deviation = 10

Which one he must definitely reject. Explain

Answer rating: 100% (QA)

A The term riskaverse describes the investor who chooses th... View the full answer