If a person requires greater return when risk increases, that person is said to be:
A) risk seeking
B) risk averse
C) risk aware
D) risk indifferent

Question

Quizplus · Accepted Answer

Risk aversion is the concept in finance and economics that explains a person's preference for certainty over uncertainty, with a greater return required to compensate for increased risk. This means that a risk-averse individual will demand higher returns as compensation for taking on more risk.

If a Person Requires Greater Return When Risk Increases, That