Why do investors require higher returns for some investments? A) to compensate for less risk B) to compensate for greater risk C) to invest less funds for less risk D) to offset the amount of money invested

Question

Social Studies

Jadon Hays

11 April, 14:14

Why do investors require higher returns for some investments? A) to compensate for less risk B) to compensate for greater risk C) to invest less funds for less risk D) to offset the amount of money invested

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Answers (2)

Know the Answer?

Jayden Henry · Answer 1

B) to compensate for greater risk

Heidi Blake · Answer 2

B) to compensate for greater risk

Explanation:

To compensate for greater risk, investors require higher returns for some investments. This is desire to be compensated more for greater risks is pretty common in economics and in other real life situations.