Lower-risk investments require a higher rate of return compared with higher-risk investments.

Name: Lower-risk investments require a higher rate of return compared with higher-risk investments.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This statement is incorrect. Generally, higher-risk investments require a higher rate of return to compensate for the increased risk assumed by the investor. Lower-risk investments typically offer a lower rate of return, but provide more stability and security.

Lower-Risk Investments Require a Higher Rate of Return Compared with Higher-Risk