GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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1.riskless assets
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2.risky assets
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3.return assets
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4.none of the above
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Detailed explanation-1: -What Is Risk Averse? Risk aversion is the tendency to avoid risk. The term risk-averse describes the investor who chooses the preservation of capital over the potential for a higher-than-average return.
Detailed explanation-2: -There are three main types of asset risk: lower risk, moderate risk, and higher risk. Lower risk are the type of assets that are associated with lower risk and lower return as well. For example, cash is a lower-risk asset.
Detailed explanation-3: -A risk-free asset is one that has a certain future return-and virtually no possibility they will drop in value or become worthless altogether. Risk-free assets tend to have low rates of return, since their safety means investors don’t need to be compensated for taking a chance.
Detailed explanation-4: -Home » Asset Risks. The risk that the amount or timing of items of cash flow connected with assets will differ from expectations or assumptions for reasons other than a change in investment rate of return. Asset risk includes delayed collectability, default, or other financial nonperformance.