[Solved] Because most investors are risk averse

Q.	Because most investors are risk averse
A.	The riskier the investment, the more the investor will pay for it
B.	The riskier the investment, the less compensation the investor requires
C.	Only financial institutions invest in risky assets
D.	They will require a higher rate of return for a riskier investment
Answer» D. They will require a higher rate of return for a riskier investment

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