A investor that is given a choice between two investments with the same expected return and who always prefers the riskier one is said to be:
A) risk-averse.
B) a risk seeker.
C) risk-neutral.
D) risk indifferent.
E) risk efficient.

Question

Quizplus · Accepted Answer

A risk seeker is an investor who prefers the riskier option despite having the same expected return as a less risky option. In this scenario, the investor would choose the riskier investment option.

A Investor That Is Given a Choice Between Two Investments