If an investor 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 risk-seeking strategy means that the investor is willing to take on more risk in hopes of making a higher return. This is contrary to a risk-averse strategy, where an investor prefers lower risk even if it means lower returns. Risk-neutral investors are indifferent to risk and make investment decisions solely based on expected returns. Risk-indifferent is not a recognized term in finance.

If an Investor Prefers Investments with Greater Risk Even If