If a manager prefers investments with greater risk even if they have lower expected returns, then he is following a ________ strategy.
A) risk-seeking
B) risk-indifferent
C) risk-averse
D) risk-neutral

Question

Quizplus · Accepted Answer

A manager who prefers investments with greater risk despite having lower expected returns is displaying a risk-seeking behavior. Such managers are willing to take on more risk to potentially earn higher returns.

If a Manager Prefers Investments with Greater Risk Even If