fees:

Finti Exth

Save

Statomit T eet for Grading

Quescion $5$ of $36$ and return. The higher an investment's risk, the $$ the return required to induce investors to purchase the asset. This relationship between nsk and return indicates that investors are risk $$ ; Investors dishlice riste and require $$ rates of return as an inducement to buy riskier securlties$.$ A

$$ represents the additional compensation investors require for bearing risk; it is the difference between the expected rate of return on a glver asset and tret on a less risky asset. An asset's risk can be considered in two ways: on a stand$-$alone basis and in a portfolio context.