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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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