Questions and Answers
What is the simple meaning of risk?
Hazard
What is the behavior of a risk averse investor?
Prefers investment with lower risk for a given level of return
What do risk neutral investors focus on?
Risk component
What do risk seeker or risk lover investors prefer?
Signup and view all the answers
Which approach can be used to hedge the interest rate risk of a bond?
Signup and view all the answers
