Multiple Choice
Suppose an investor is considering one of two investments which are identical in all respects except for risk. If the investor anticipates a fair return for the risk of the security they invest in they can expect to ________.
A) earn no more than the Treasury bond 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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