Vidyalelo
Management · Q189

Financial Management

Graduate and Post Graduate · Management · question 189

Q189

Risk lover's utility curves have __________.

A.
Positive slope
B.
Negative slope
C.
Convex to the origin
Answer
D.
Negative slope and convex to the origin

Answer: Option C

Solution

Answer: Option C
Solution:
Risk lover's utility curves have Convex to the origin. Most individuals seek to minimise risk and are called risk averter or risk averse. However, some individuals prefer risk and are therefore called risk-seekers or risk lovers.