About the risk posed by the investment

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Reference no: EM132070502

1. Which of the following statement is false?

Risk seeking investor is the typical profile of a gambler, will choose to gamble because it’s not about the returns.

Risk seeking investor loves taking risk, and gets additional pleasure by taking the risk.

A risk lover definitely wants to increase his returns but his utility (level of happiness) increases from the extra risk that he takes.

For risk lovers, the risk-return curve slopes downwards, i.e. the return they receive reduces and the risk increases.

All the above are true

None are true

2. Who is only concerned about the return but does not worry about the risk posed by the investment. As long as an investment provides high returns, this type of investor will go for it.

Risk seeking investor

Risk averse investor

Risk neutral investor

either of the above

Reference no: EM132070502

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