Statements about risky investments

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Which one of the following statements about risky investments is correct?

A. Riskier investments tend to sell for lower prices so they provide a higher expected rate of return to compensate for risk.

B. Riskier investments tend to sell for prices directly correlated with expected rates of return.

 

C. Riskier investments tend to sell for higher prices so they provide a higgher expected rate of retun to compensate for risk

Reference no: EM131095904

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