If one security has a greater risk than another security, how will investors respond? - 4164

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 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 secu