Which Investor Has a Positive Attitude Towards Expected Return and a Negative

question 63

Multiple Choice

Which investor has a positive attitude towards expected return and a negative attitude towards risk?

• A)A risk-averse investor.
• B)A risk-neutral investor.
• C)A risk-seeking investor.
• D)A well-diversified investor.

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Definitions:

Dividends

Payments made to shareholders out of a company's profits.

Equity Method

This is a method in accounting where investments in external companies are initially logged at their acquisition cost, then later altered to account for the owner's share in the profits or losses of the company invested in.

Intra-entity Inventory

Inventory transactions that occur within the same company, involving transfers between departments or subsidiaries, not affecting the overall financial position.

Gross Profit

The financial metric representing the difference between sales and the cost of goods sold.