Question
Which statement is the most correct regarding investment returns and their level of risk? a. Compared to lower risk alternatives, higher risk investments always provided
Which statement is the most correct regarding investment returns and their level of risk?
a. Compared to lower risk alternatives, higher risk investments always provided higher levels of return (ex-post) over the short term.
b. All of these answers are correct.
c. Riskier investments generally have the lower expected returns (ex-ante) than risk-less alternatives.
d. Higher risk investments may provide lower actual levels of return (ex-post) than risk free investments over the short- or long-term.
f. A risk-free investment never has the highest actual return ex-post.
g. Investors should invest in risk-free assets when they want to earn the highest projected ex-ante returns over the long-run.
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