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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
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. |
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