Related to the Economics in Practice on p. 522: If the estate in the Chekhov play Uncle Vanya is earning 2 percent and a less risky investment is also earning 2 percent, the price of the estate would ________ to make the two investments financially equivalent.

Question

Quizplus · Accepted Answer

The estate's price would have to fall to make it financially equivalent to the less risky investment, as investors would require a risk premium for holding a riskier asset with the same return.

Related to the Economics in Practice on P