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1. Which of the following statements regarding risk-averse investors is true? A. They only care about the rate of return. C. They only accept risky investments that offer risk premiums over the risk-free rate. D. They are willing to accept lower returns and high risk E. They only care about the riskiness of investments. 2. In the mean-standard deviation graph, which one of the following statements is true regarding the indifference curve of a risk-averse investor? A. It is the locus of portfolios that have the same expected rates of return and different standard deviations. B. It is the locus of portfolios that have the same standard deviations and different rates of return. C. It is the locus of portfolios that offer the same utility according to returns and standard deviations D. It connects portfolios that offer increasing utilities according to returns and standard deviations E. None of the options are correct