Question

Rational investors ________ fluctuations in the value of their investments.

A) are averse to
B) prefer
C) are indifferent to
D) are in favor of

Answer 1

The correct answer is (A)

Step-by-step explanation:

According to economics, consumers are rational; they spend money where they feel they can grow profits. A market where there is fluctuations in investment, a rational consumer will not prefer to invest in such markets and a rational investors are averse to fluctuations in the value of their investment. A person who is a risk lover who wants to gain a high return by bearing high risk will only be in favour of such investment.