Which best describes the relationship between the cost of acquiring information and return?
A) a high return must compensate for a high cost of acquiring information
B) a higher cost of information corresponds with a low return
C) a low cost of acquiring information corresponds with a high return
D) a higher return results in a lower cost of acquiring information

Question

Quizplus · Accepted Answer

A high return must compensate for a high cost of acquiring information because investors need to be rewarded for the additional expenses incurred in obtaining valuable information.

Which Best Describes the Relationship Between the Cost of Acquiring