Since for a given increase in risk, most managers require an increase in return, they are
A) risk-seeking.
B) risk-indifferent.
C) risk-free.
D) risk-averse.

Question

Quizplus · Accepted Answer

This is because managers who require an increase in return for a given increase in risk are said to be risk-averse. This means that they are not willing to take on additional risk unless they are compensated with a higher return.

Since for a Given Increase in Risk, Most Managers Require