Choice "A" is correct. If an investor's certainty equivalent, the point at which the investor is indifferent to risk, exceeds the expected return on an investment, then the investor is actually seeking lower return for higher risk. This behavior represents risk seeking behavior.
Choice "d" is incorrect. Risk indifferent behavior occurs when an investor's certainty equivalent is equal to the expected return on the investment.
Choice "b" is incorrect. Risk averse behavior occurs when an investor's certainty equivalent is less than the expected rate of return. The investor seeks higher returns for more risk.
Choice "c" is incorrect. Cautious is not a technical term used in risk behavior classifications.