Risk-aversion of an investor can be measured by______________.

Market Rate of Return

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Risk-free Rate of Return

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Portfolio Return

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None of the above

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Solution

The correct option is D None of the above
Risk aversion means the tendency of a person to avoid a decision/investment when there is risk involved. Risk aversion is a personal trait of a person. Risk-aversion of an investor cannot be measured by market rate of return, risk free rate of return or portfolio profit.

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