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Why do investments with higher risk also have higher required returns? A. Risky investments are more likely to do well so they have higher returns.
Why do investments with higher risk also have higher required returns?
A. | Risky investments are more likely to do well so they have higher returns. | |
B. | High risk investments dont usually have higher required returns. | |
C. | Investors like risky investments and the increased demand results in a higher required return. | |
D. | Investors do not like taking on extra risk and require a higher return in compensation. |
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