Risk aversion implies that
A) individuals will not take on risk.
B) investors must be compensated for about half of the risk they take on.
C) investors must be compensated for the risk they take on.
D) None of the above.
C
You might also like to view...
The establishment of Jamestown in 1607 was financed by
a. the London Company. b. the Plymouth Company. c. the English Parliament. d. Sir Walter Raleigh.
Which of the following statements is false?
a. The Clayton Act allows triple damages in civil lawsuits in order to encourage lawsuits against conspiring oligopolists. b. Many economists defend the practice of resale price maintenance on the grounds that it may help solve a free-rider problem. c. Most economists agree that predatory pricing is a profitable business strategy that usually preserves market power. d. The U.S. Supreme Court's view that the practice of tying usually allows a firm to extend its market power is not generally supported by economic theory.