Practice mode Finance

An investor’s attitude towards risk determines what?

Correct answer A. Rate of return

Explanation

Risk-averse investors demand a higher expected rate of return to hold riskier assets, so attitude to risk sets the return they require.

Report a problem

Answer checked How we write and check questions

Tip: press A, B, C or D to answer, and N for the next question.

Advertisement

Have a question about this answer?

Your email address will not be published. Required fields are marked *

Links and website addresses are not allowed in comments.