For the risk-indifferent manager, no change in return would be required for an increase in risk.

Question

Quizplus · Accepted Answer

Risk-indifferent managers are those who are willing to take on higher levels of risk without the expectation of being compensated with higher returns. This means that they are willing to accept the same return for an increase in risk as they would for a lower level of risk. Therefore, no change in return is required for an increase in risk for risk-indifferent managers.

For the Risk-Indifferent Manager, No Change in Return Would Be