People who choose most risky investments are :
Risk seekers
Attitudes towards risk are classified by comparing the utility of a gamble with the utility of its expected value. A risk-averse person has a concave utility-of-wealth function and prefers a sure amount to a gamble with the same expected value; a risk-neutral person is indifferent; a risk-loving person has a convex utility function and prefers the gamble.
An investor who deliberately chooses the most risky investments is willing to accept high variability of returns, and may even value the chance of a large gain above its expected value. Such behaviour defines risk seekers (risk lovers), whose marginal utility of wealth rises with wealth.
Risk-averse investors avoid high-risk assets unless paid a sufficient risk premium. Risk-neutral investors care only about expected return and ignore variance, so they do not specifically prefer the riskiest assets. Risk minimisers, by definition, choose the least risky portfolio available, which is the opposite of the behaviour described.
Risk seekers option is correct.
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