Question

Select the correct answer.

Which statement is true?

A) As the risk of an investment decreases the opportunity of gains increases

B)As the risk of an investment decreases, so does the potential for its return

C) As the risk of an investment increases, its market value increases

D) As the risk of an investment increases the opportunity of gains decreases

E) As the risk of an investment increases, its market value decreases.

Answer 1

B

Explanation:

C might be tempting as answer, but the market value dies not automatically increase with the risk. in fact, it might become too risky to invest and the market value decreases.

but with higher risk comes normally also the potential for a higher return. and a higher chance for failure, though.