Asked by Vanessa Green on Jul 11, 2024
Verified
Empirical evidence confirms that investors become ________ as they approach retirement.
A) greedier
B) less interested in investments
C) more risk averse
D) more risk tolerant
Risk Averse
A description of an investor's preference for lower risk investments, often characterized by a willingness to accept lower returns in exchange for reduced risk.
Empirical Evidence
Information derived from observation or experimentation that serves as the basis for knowledge or theory.
- Recognize behavioral finance aspects, such as risk tolerance, at different life stages.
Verified Answer
KO
Khadarinho OfficialJul 15, 2024
Final Answer :
C
Explanation :
As investors approach retirement, they tend to become more risk-averse because they have less time to recover from potential losses, and they want to preserve their accumulated wealth for their retirement years. This is supported by empirical evidence from various studies conducted in the field of behavioral finance.
Learning Objectives
- Recognize behavioral finance aspects, such as risk tolerance, at different life stages.
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