Multiple choice

Which of the following characterize the fund that a risk adverse investor should choose?

  1. Gross dividend yield 15% Beta 1.5,Ex-Marks 90

  2. Gross dividend yield 10%, Beta 1, Ex-Marks 70

  3. Gross dividend yield 11%, Beta 0.9,Ex-Marks 80

  4. Gross dividend yield 12%, Beta '''1Ex-Marks 80
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A risk-averse investor seeks stable returns with minimal volatility. Option C has the lowest Beta (0.9), indicating lower volatility compared to the market. Beta 1.5 (Option A) indicates high volatility - unsuitable for risk-averse investors. Option D contains a formatting error with '''1 but would likely be Beta 1, which is still higher risk than Beta 0.9.

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