a person who is risk-neutral receives greater satisfaction when more payoff is at stake and is willing to pay a penalty to take risks. group of answer choices true false

Respuesta :

True. A hazard-looking for individual prefers effects which can be greater unsure and is regularly inclined to pay a penalty to take risks.

The required details for Risk-Seeking in given paragraph

Risk-looking for is one's reputation of more hazard, in finance regularly associated with price volatility and uncertainty in investments or trading, in trade for the ability for better returns. Risk seekers are greater inquisitive about capital profits from speculative property than capital preservation from decrease-hazard property. Risk-looking for may be contrasted with hazard-averse. Risk-looking for refers to an character who's inclined to just accept more monetary uncertainty in trade for the ability of better returns. Risk-looking for confers a excessive diploma of hazard tolerance, or the quantity of ability losses an investor is inclined to just accept. In comparison with hazard-looking for traders, hazard-averse traders are looking for low-hazard investments and are inclined to just accept a decrease charge of go back due to the choice to hold capital.

Examples of asset sorts that would appeal to a hazard-looking for investor encompass options, futures, currencies, penny stocks, opportunity investments, cryptocurrencies, and rising marketplace equities.

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