Because most investors are risk averse,
A)the riskier the investment, the more the investor will pay for it.
B)the riskier the investment, the less compensation the investor requires.
C)only financial institutions invest in risky assets.
D)they will require a higher rate of return for a riskier investment.

Question

Quizplus · Accepted Answer

The higher the risk, the higher the return expected from the investment by the investor.

Because Most Investors Are Risk Averse