Investors demand a higher return for investments that have larger fluctuations in values becaus?

Question

Quizplus · Accepted Answer

Investors demand a higher return for investments that have larger fluctuations in values because these investments are considered riskier. Riskier investments are less predictable and have a greater chance of losing value or not providing the expected return, causing investors to demand a higher return to compensate for this risk. This is why investors who do not like risk are often more conservative with their investments and seek lower-risk options with more stable values.

Investors Demand a Higher Return for Investments That Have Larger