If an Investor Requires Greater Return When Risk Increases,then He

question 114

Multiple Choice

If an investor 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:

Common Stock

A form of corporate equity ownership, a type of security representing ownership in a corporation, with voting rights and the potential for dividends.

Outstanding

An amount of money that is still owed or an issue that has not yet been resolved.

Common Shareholders

Individuals or entities that own common stock in a corporation, giving them rights to vote on corporate matters and receive dividends.

Preferred Shareholders

Investors who own preferred shares in a company, giving them priority over common shareholders in the distribution of dividends and assets in the event of liquidation, but typically without voting rights.