5 Questions
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?
Higher risk for additional return
Which approach can be used to hedge the interest rate risk of a bond?
Hedging with options
Test your knowledge on investment risk attitudes and investor behaviors towards risk, including risk averse, risk neutral, and risk seeker attitudes.
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