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When investors dislike risk but are willing to undertake risk if they are compensated in the...

When investors dislike risk but are willing to undertake risk if they are compensated in the form of higher returns, this is an example of loss aversion. anchoring. mental accounting. risk aversion.

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Answer #1

Hello Sir/ Mam

YOUR REQUIRED ANSWER IS RISK AVERSION.

When investors dislike risk and are willing to take risk if they are compesated in the form of higher return. This means that the investor is averse of risk and is willing to take risk in exchange of return. Hence, as investors are averting risk, it is an example of Risk Aversion.

I hope this solves your doubt.

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