Risk lover’s utility curves have __________.

Positive slope
Negative slope
Convex to the origin
Negative slope and convex to the origin

The correct answer is A. Positive slope.

A risk lover is someone who is willing to take on more risk in order to achieve a higher potential return. This means that they are willing to accept a lower expected return in exchange for a higher chance of a higher return.

The

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utility curve of a risk lover is upward sloping, which means that they are willing to accept a lower expected return in exchange for a higher chance of a higher return.

Option B is incorrect because a risk averter is someone who is not willing to take on more risk. This means that they are not willing to accept a lower expected return in exchange for a higher chance of a higher return.

Option C is incorrect because a risk neutral person is someone who is indifferent to risk. This means that they are willing to accept an expected return that is equal to the risk-free rate.

Option D is incorrect because a risk lover’s utility curve is not concave to the origin.

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