Respuesta :
The statement is False. A capitalist with HIGH-risk aversion (very risk-averse) can select a portfolio with a LOWER variance. A portfolio dominates another if it's a better expected come and lower variance.
We'll invariably like a portfolio that includes a HIGHER expected-to-come and LOWER variance. Risk is the likelihood that some unfavorable event can occur, and there's a trade-off between risk and come. The upper investment's risk, the upper the come needed to induce investors to get the quality.
Risk is any uncertainty with the relevancy of your investments that has the potential to negatively impact your money welfare. for instance, your investment worth would possibly rise or fall due to market conditions (market risk).
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