Which dwarf owned a magical ring that brought misfortune?

The dwarf who owned the magical ring that brought misfortune was Andvari. The ring was called Andvaranaut, a prized object whose curse turned inherited wealth into a source of disaster.

In the Völsunga saga tradition, Andvari lived beneath a waterfall and could transform himself into a pike. Loki caught him, compelled him to surrender his treasure, and took the ring as part of the compensation demanded after Ótr, son of Hreiðmar, was killed. Andvari then cursed the gold and the ring so that misfortune would follow its possessors.

Hreiðmar received the treasure, but his son Fáfnir murdered him to claim it. Fáfnir later became a dragon and guarded the hoard until the hero Sigurð killed him. Sigurð acquired Andvaranaut, linking the ring to the wider cycle of betrayal, revenge, and doomed treasure.

The names in the answer choices are related to the story, which makes this question easy to confuse. Sigurd is the hero, Hreidmar is the dwarf king who receives the compensation, and Fafnir is the dragon-like hoard guardian—not the ring’s original owner.