Q746
For investors, steeper slope of indifference curve shows more
A.
risk averse investor
AnswerB.
risk taker investor
C.
in differential investor
D.
ineffective investment
Answer: Option A
Solution
Answer: Option A
Solution:
For investors, steeper slope of indifference curve shows more risk averse investor. A risk averse investor is an investor who prefers lower returns with known risks rather than higher returns with unknown risks. In other words, among various investments giving the same return with different level of risks, this investor always prefers the alternative with least interest.