Question

John is an investor who is looking at two opportunities. One has higher risk than the other. John is willing to invest in the higher risk opportunity, but only if it offers higher expected return. How would we describe John? As a risk-loving investor
A. As a risk-neutral investor
B. As a risk-averse investor
C. As a risk-seeking investor
D. As a risk-tolerant investor

Answer 1

Answer:

B. As a risk-averse investor

Explanation:

B. As a risk-averse investor is a correct option . Risk-averse investors can invest in higher risk opportunity only if it offers higher expected return .