most investors approach risky investments by\ninvesting the same way that they do with safer…
most investors approach risky investments by\ninvesting the same way that they do with safer investments.\ninvesting more money in the stock of unknown companies.\ninvesting less money in low- and medium - risk investments.\ninvesting less money in high - risk investments.
Answer
Brief Explanations:
Most investors are risk - averse to some degree. High - risk investments have a higher probability of loss, so they tend to invest less money in them to limit potential losses. Investing the same way as in safer investments ignores risk differences. Investing more in unknown companies' stocks is riskier and not a common approach. Investing less in low - and medium - risk investments is not a typical way to approach risky investments.
Answer:
D. investing less money in high - risk investments.