If a person's required return does not change when risk increases, that person is said to be
A) risk-seeking.
B) risk-neutral.
C) risk-averse.
D) risk-aware.

Name: If a person's required return does not change when risk increases, that person is said to be A) risk-seeking. B) risk-neutral. C) risk-averse. D) risk-aware.
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Question

Quizplus · Accepted Answer

A person who is risk-neutral is indifferent to risk and does not require a higher return when risk increases. They are willing to take on risk without expecting a higher reward.

If a Person's Required Return Does Not Change When Risk