If an investor 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

The investor is said to be risk-averse because they are demanding a greater return as compensation for the increased risk. This indicates that they are not willing to take on more risk without adequate compensation for it. Choosing A would suggest that the investor is actually seeking out risk, which contradicts the given statement. B would suggest that the investor is indifferent to risk, which is also not supported by the statement. D is not a commonly used term in finance and is not a valid option.

If an Investor Requires Greater Return When Risk Increases,then He