An investor who bases the decision to buy an asset solely on the expected return of an asset is considered to be
A) risk loving.
B) risk averse.
C) risk neutral.
D) risk avoiding.

Question

Quizplus · Accepted Answer

Risk neutral investors are those who are indifferent to risk when making investment decisions, focusing solely on the expected return without concern for the variability or risk of those returns.

An Investor Who Bases the Decision to Buy an Asset