Rational investors may be willing to choose an investment that has additional risk but does not offer additional reward.

Name: Rational investors may be willing to choose an investment that has additional risk but does not offer additional reward.
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Question

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Rational investors will not choose an investment that has additional risk but does not offer additional reward because it goes against the principle of risk-return tradeoff, which suggests that investors need to be compensated for taking on additional risk.

Rational Investors May Be Willing to Choose an Investment That