If a manager requires greater return when risk increases, then he is said to be ________.
A) risk-seeking
B) risk-indifferent
C) risk-averse
D) risk-aware

Question

Quizplus · Accepted Answer

A manager who requires greater return when risk increases is said to be risk-averse. This means that they are willing to take on some level of risk but only if they are compensated for that risk through a higher return. Risk-seeking managers, in contrast, would be willing to take on more risk even with a lower expected return, while risk-indifferent managers would be willing to take on any level of risk regardless of the potential return.

If a Manager Requires Greater Return When Risk Increases, Then