1. Explain what infinitely risk-averse means? I came across a website and this is what they said:

1. The extreme case is someone who is infinitely risk averse. This is a person who will accept even $1 over the coin flip of $2,000 or $0.

2. In other words, the person who is infinitely risk averse views the gamble in terms of its worst-case scenario.

As such, I am confused because from statement 1 is means he is a risk taker (Correct me if I'm wrong) whereas for statement 2, it means a person would not want to gamble because of the risk.

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QUESTION 23 Your uncle has 100,000 SGD to invest in one fund. If he is infinitely risk-averse, which fund does he invest in? St. Dev China Europe United States. Treasury Bill Return 0.21 0.12 0.09 0.01 0.45 0.32 0.17 0 QUESTION 23 Your uncle has 100,000 SGD to invest in one fund. If he is infinitely risk-averse, which fund does he invest in? St. Dev China Europe United States. Treasury Bill Return 0.21 0.12 0.09 0.01 0.45 0.32 0.17 0

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I understand the confusion In finance the term riskaverse refers to an individuals attitude towards ... View the full answer