If a Manager Requires Greater Return When Risk Increases, Then

question 148

Multiple Choice

If a manager requires greater return when risk increases, then he is said to be ________.

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

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Definitions:

Opportunity Cost

The skipping of feasible improvements from various alternatives due to settling on one.

Own Savings

The portion of personal or household income that is not spent on consumption but is kept aside for future use, investments, or emergencies.

Economic Profit

The variance identified between overall proceeds and all-inclusive financial outgoings, inclusive of both explicit and veiled costs.

Investment Return

The gain or loss on an investment over a specified time period, expressed as a percentage of the investment's initial cost.