Investors make their choices of which assets to hold by comparing the expected return,liquidity,and risk of alternative assets.

Question

Quizplus · Accepted Answer

This statement is true. Investors take into account different factors such as the potential return on their investment, how easy it will be to turn their investment into cash (liquidity), and the level of risk associated with different assets before making their investment decisions.

Investors Make Their Choices of Which Assets to Hold by Comparing