If a Person Requires Greater Return When Risk Increases, That

question 47

Multiple Choice

If a person requires greater return when risk increases, that person is said to be

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

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Definitions:

Fidelity Mutual

An investment firm known for offering mutual funds and other financial products and services to its clients.

Four-Year Annuity

A financial product that provides a series of equal payments over a period of four years to the holder.

Annual Payments

Recurring payments made once a year, often related to loans, leases, or other financial obligations.

Interest Rate

The amount charged by a lender to a borrower for the use of assets, usually expressed as a percentage of the principal.