What of the following statement is most correct: A:the greater the risk the lower the return investors expect B: when choosing between 2 investment w same level of risk, choose one w higher return C: if two investments have the same expected return,investors prefer riskiest alternative D when choosing between 2 same level of risk investor prefer lower return
Answer : B when choosing between 2 investment w same level of risk, choose one w higher return is most Correct
Explanation to the above answer
As we all know that , when there is higher the risk higher the return and lower the risk ,return is also lower . So if there is opportunity for the investor to choosing between 2 investment w same level of risk he will go for investment with the higher return, because his intension will be maximize return with the minimum risk
