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Which is least likely?  A. For the risk-seeking manager, no change in return would be required for an increase in risk.  B. For the risk-averse manager, required return would decrease for an increase in risk.  C. For the risk-indifferent manager, no change in return

Which is least likely?  A. For the risk-seeking manager, no change in return would be required for an increase in risk.  B. For the risk-averse manager, required return would decrease for an increase in risk.  C. For the risk-indifferent manager, no change in return

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Which is least likely?

  •  A. For the risk-seeking manager, no change in return would be required for an increase in risk.
  •  B. For the risk-averse manager, required return would decrease for an increase in risk.
  •  C. For the risk-indifferent manager, no change in return would be required for an increase in risk.
  •  D. A and B
Expert Solution
Step 1

Risk and return both are related to each other and depending upon the nature of managers or investors required rate would change accordingly.

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