Multiple Choice
Suppose an investor is considering one of two investments that are identical in all respects except for risk. If the investor anticipates a fair return for the risk of the security he invests in, he can expect to ________.
A) earn no more than the Treasury-bill rate on either security.
B) pay less for the security that has higher risk.
C) pay less for the security that has lower risk.
D) earn more if interest rates are lower.
Correct Answer:
Verified
Correct Answer:
Verified
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