Which of the Following Describes the Attribute of a Risk

question 14

Multiple Choice

Which of the following describes the attribute of a risk neutral investor?

• A) An investor that makes decisions based on the expected return and the degree of risk of assets.
• B) An investor that makes decisions based on the credit rating of assets.
• C) An investor that makes decisions based on the popularity of assets.
• D) An investor that makes decisions based on the advice of financial planners.
• E) An investor that makes decisions based on the expected return of assets.

---

Definitions:

Cash Receipts

The collection of money, including coins, notes, check payments, or money orders, received by a business during a given period.

Internal Control

Internal control comprises the policies and procedures implemented by a company to safeguard its assets, ensure financial reporting accuracy, and comply with laws and regulations.

Principle Of Internal Control

A framework designed to provide reasonable assurance regarding the achievement of objectives in effectiveness and efficiency of operations, reliability of financial reporting, and compliance with applicable laws and regulations.

Fraud

Fraud is a deliberate act of deception intended for personal gain or to cause a loss to another party, often involving financial transactions.