Which of the following statements is true of individuals who are 'risk-seeking'?

Individuals who are considered 'risk-seeking' are characterized by their willingness to take on certain risks rather than avoiding them. This tendency means that they are more inclined to embrace situations or decisions that could potentially lead to higher rewards, even if it involves facing the possibility of negative outcomes. Their approach contrasts with those who are risk-averse, who typically prefer to minimize uncertainty and exposure to risk.

By being willing to carry certain risks themselves, risk-seeking individuals may engage in investments or activities that others might shy away from due to the associated hazards. This behavior reflects their propensity to find value or excitement in the unpredictability of risks, which can sometimes lead to greater potential rewards.

The other statements do not accurately reflect the nature of risk-seeking individuals. For instance, they are not inherently more likely to take out insurance; in fact, they might be less inclined to seek insurance as they are comfortable taking on the risk themselves. Similarly, they do not always retain all risks nor do they typically focus on minimizing risk exposure; both of these behaviors are more characteristic of risk-averse individuals.