Two investments have the same expected rate of return but


Two investments have the same expected rate of return, but investment A has a greater variance in the distribution of its expected return than investment B. Which investment would a risk averse investor choose? A risk loving investor? A risk neutral investor? Why? If most investors are risk averse, what will happen to the price of investment A vs. the price of investment B?

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Financial Management: Two investments have the same expected rate of return but
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