A risk-seeker is likely to:
A) buy a government bond instead of a stock.
B) put money in a savings account instead of investing in a start-up company.
C) invest in a start-up company instead of putting his money under his mattress.
D) put his money under his mattress instead of buying company stock.

Question

Quizplus · Accepted Answer

A risk-seeker is someone who is willing to take on more risk in their investments for the potential of higher returns. Investing in a start-up company is a high-risk, high-reward opportunity that would appeal to a risk-seeker. Buying a government bond (A) or putting money in a savings account (B) is a low-risk, low-reward choice that is more suited for a risk-averse individual. Putting money under the mattress (D) is not a viable investment option and is not likely to be chosen by a risk-seeker.

A Risk-Seeker Is Likely To