A risk-seeking investor attaches:
A)increasing utility to each increment in wealth.
B)increasing utility to each decrement in risk.
C)decreasing utility to each increment in risk.
D)decreasing utility to each increment in wealth.

Question

Quizplus · Accepted Answer

A risk-seeking investor is willing to take on more risk in order to potentially earn higher returns. This behavior indicates that the investor places a higher value on each increment in wealth, thus attaching increasing utility to each increment.

A Risk-Seeking Investor Attaches