Q807
According to market risk premium, an amount of risk premium depends upon investor
A.
risk taking
B.
risk aversion
AnswerC.
market aversion
D.
portfolio aversion
Answer: Option B
Solution
Answer: Option B
Solution:
According to market risk premium, an amount of risk premium depends upon investor risk aversion. The term risk-averse refers to investors who, when faced with two investments with a similar expected return, prefer the lower-risk option.