Concerning an investment project,which of the following is TRUE?
A)A risk-neutral individual is more likely to invest than a risk-averse individual.
B)A risk-neutral individual is more likely to invest than a risk-loving individual.
C)A risk-neutral individual is more less likely to invest than a risk-averse individual.
D)Not enough information.

Question

Quizplus · Accepted Answer

A risk-neutral individual does not factor in risk when making investment decisions, therefore they would be more likely to invest than a risk-averse individual who is hesitant to take on any risk. A risk-loving individual may be willing to take on more risk, but it is not specified if they are more or less likely to invest than a risk-neutral individual.

Concerning an Investment Project,which of the Following Is TRUE