Question
In: Finance
As a risk-averse investor, would you prefer to invest in bonds or securities during COVID-19 pandemic?...
As a risk-averse investor, would you prefer to invest in bonds or securities during COVID-19 pandemic? Will your answer change if you are a risk-taker investor?
Solutions
Expert Solution
A risk averse investor would prefer bonds during COVID-19 pandemic. The reason being that one wants to have low risk at these times and bonds have lower risk compared to stocks.
A risk taker investor would want to invest in securities at these times as he gains more utility by investing in securities which have more risk, given the same expected return.
jeff jeffy answered 2 years agoRelated Solutions
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