If one security has a greater risk than another security, how will investors respond? - 3790

Solution Posted by
Solution Detail
Price: $1.25
  • From: ,
  • Posted on: Tue 27 Mar, 2012
  • Request id: None
  • Purchased: 0 time(s)
  • Average Rating: No rating
Request Description

If one security has a greater risk than another security, how will investors respond?

a.       They will require a lower rate of return for the investment that has greater risk.

b.      They would be indifferent regarding their expectation of rates of return for either investment.

c.       They will require a higher rate of return for the investment that has greater risk.

d.      None of the above

 

Solution Description

If one security has a greater risk than another security, how will investors respond?

a.       They wi