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

Question

Quizplus · Accepted Answer

If a person's required return does not change when risk increases, it means the person is indifferent to the risk. Such a person is called risk-indifferent, as they are neither risk-averse nor risk-seeking.

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