Which of the following statements is true?
A)Assets with higher levels of market risk will sell for higher prices.
B)Assets with higher levels of market risk will have lower expected rates of return.
C)Assets with lower levels of market risk will have higher expected rates of return.
D)Assets with lower levels of market risk will sell for higher prices.

Question

Quizplus · Accepted Answer

Assets with lower levels of market risk are considered safer and therefore more desirable, which typically leads to them selling for higher prices. This is because investors are willing to pay a premium for the perceived safety of these assets.

Which of the Following Statements Is True