If a Manager Prefers Investments with Greater Risk Even If

question 159

Multiple Choice

If a manager prefers investments with greater risk even if they have lower expected returns, then he is following a ________ strategy.

• A) risk-seeking
• B) risk-indifferent
• C) risk-averse
• D) risk-neutral

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Definitions:

Impossibility of Performance

A legal doctrine that releases parties from their contractual obligations when an event occurs that makes performance objectively impossible.

Absconded

To leave hurriedly and secretly, typically to escape from custody or avoid arrest.

Digestive Problem

Health issues related to the digestive system that impair its ability to function properly.

Offer of Performance

A gesture by a party involved in a contract to fulfill their part of the agreement, often used as evidence of willingness to comply with the contractual terms.