Question

Most investors are risk-averse, which means they

A. Prefer high-risk investments.
B. Seek uncertainty in financial markets.
C. Are cautious and avoid high-risk investments.
D. Are indifferent to market fluctuations.

Answer 1

Most investors are risk-averse, which means they are cautious and avoid high-risk investments.

Step-by-step explanation:

Most investors are risk-averse, which means they are cautious and avoid high-risk investments. Investors who are risk-averse typically prefer reduced risk and certainty in their investments. They tend to prioritize preservation of capital rather than taking on higher risks for potentially higher returns.