Question

In the Investment marketplace, Investors will likely accept a high-risk investment only if it promises

Select the best answer from the choices provided.
А.
real returns
B.
nominal returns
C. high returns
D. low, constant returns

Answer 1

Answer: C. high returns

Explanation: Risk-return tradeoff is an investing theory which indicates that as higher the risk, the greater the return reward. In order to determine an acceptable risk-return tradeoff, investors need to weigh several aspects, including total risk exposure, the ability to substitute missing capital, and more.