The higher the possible outcomes fall from the expected outcome of an investment, the higher the risk and lower the required rate of return by investors.

Name: The higher the possible outcomes fall from the expected outcome of an investment, the higher the risk and lower the required rate of return by investors.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The higher the possible outcomes fall from the expected outcome of an investment, the higher the risk and higher the required rate of return by investors to compensate for that risk.

The Higher the Possible Outcomes Fall from the Expected Outcome