If one security has a greater risk than another security, investors will most likely require a [blank] rate of return for the investment that has the [blank] risk.
A)lower; greater
B)higher; lower
C)higher; greater
D)lower; lesser

Question

Quizplus · Accepted Answer

Investors typically demand a higher rate of return for investments that carry greater risk, reflecting the risk-return tradeoff principle in finance.

If One Security Has a Greater Risk Than Another Security