Risk averse investors require ____ rates of return for investments with ____ risk.
A) higher;lower
B) lower;higher
C) lower;lower
D) higher;higher
E) both c and d are correct

Question

Quizplus · Accepted Answer

Risk averse investors are not comfortable taking high risks and hence they require higher rates of return for the same amount of risk. Lower rates of return only attract investors who are willing to take more risk.

Risk Averse Investors Require ____ Rates of Return for Investments