Answer: A greenfield project without guarantees of demand upon completion

## Explanation **Greenfield projects** are considered high-risk infrastructure investments because: 1. **Construction risk**: These projects involve building new infrastructure from scratch, which carries risks of delays, cost overruns, and technical challenges. 2. **Demand risk**: The question specifically mentions "without guarantees of demand upon completion," meaning there's uncertainty about whether the completed project will generate sufficient revenue. 3. **Regulatory and political risk**: New projects often face regulatory hurdles and political uncertainties. 4. **Financing risk**: Greenfield projects typically require significant upfront capital investment with uncertain returns. **Comparison with other options:** - **Option A (An asset with a history of steady cash flows)**: This represents a low-risk investment as it has proven revenue generation. - **Option B (A brownfield asset leased back to a government)**: Brownfield assets are existing infrastructure projects, and a leaseback arrangement with a government provides stable, predictable cash flows, making this a lower-risk investment. **Key takeaway**: In infrastructure investing, greenfield projects are generally considered higher risk than brownfield projects due to the uncertainties involved in construction, demand, and initial operations.

Author: LeetQuiz .