Finance Unbox-ED ($) - Grade 6-8 - Session 021 - Quiz 2

In finance some investors are assumed to be risk-averse and some investors are assumed to be risk-seekers

• True
• False

Risk-averse in finance means someone that would only make low risk and low return investments

• True
• False

Risk-seeker in finance means someone that would only make high risk and high return investments

• True
• False

Select all the statements are true about someone who is risk-averse

• Maximizes returns for a given level of risk
• Minimizes return for a given level of risk
• Maximizes risk for a given level of risk
• Minimizes risk for a given level of return

Select all the statements are true about someone who is a risk-seeker

• Maximizes returns for a given level of risk
• Minimizes return for a given level of risk
• Maximizes risk for a given level of risk
• Minimizes risk for a given level of return