Why do investors demand a higher return for riskier investments? (Choose all that apply)

A. Investors are risk-loving and so desire more return when they take on more risk

B. Investors are risk-averse and insist on a higher return when the investment is riskier

C. Risk reduces the expected return and investors demand a higher return to compensate.

D. Investors do not demand a higher nominal return for riskier investments.