If a Person's Required Return Decreases for an Increase in Risk

question 30

Multiple Choice

If a person's required return decreases for an increase in risk, that person is said to be

• A) risk-indifferent.
• B) risk-averse.
• C) risk-seeking.
• D) risk-aware.

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Definitions:

Leather Seats

High-quality, durable seating surfaces made from the hide of animals, notably used in automotive upholstery.

Trade Surplus

A situation where a country's exports exceed its imports in value over a certain period of time.

Gross Domestic Product

The total value of all goods and services produced within a country's borders over a specific time period, used as a measure of economic performance.

Exports

Goods or services produced in one country and sold to buyers in another, contributing to international trade and economic globalization.