AN INVESTMENT HAS A 50% PROBABILITY OF RETURNING 12% AND A 50% PR...

117. - MOCK AND SAMPLE EXAMS CFA LEVEL I MOCK EXAM AFTERNOON VERSIONB QUESTIONS 2014
MOCK AND SAMPLE EXAMS CFA LEVEL I MOCK EXAM AFTERNOON VERSIONB QUESTIONS 2014

117. An investment has a 50% probability of returning 12% and a 50% probability of returning 6%. An

investor prefers this uncertain investment over a guaranteed return of 10%. This preference most

likely indicates that the investor is risk:

A. averse.

B. seeking.

C. neutral.