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QUESTION 2 7 Because most investors are risk averse, the riskier the investment, the more the investor will pay for it . the riskier the

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27

Because most investors are risk averse,

the riskier the investment, the more the investor will pay for it

.

the riskier the investment, the less compensation the investor requires.

only financial institutions invest in risky assets.

they will require a higher rate of return for a riskier investment.

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