Answer to Question #218082 in Macroeconomics for Muhammad

Question

“No one who is risk-averse will ever buy a security that has a lower expected return, more
risk, and less liquidity than another security.” Is this statement true, false, or uncertain? Explain
your answer.

Answer 1

The statement is very true because the mentioned characteristics are the ones that make the security to be less desirable for the risk-averse person.