Stock returns that are higher than 16%
A) are impossible to achieve.
B) can be achieved but require accepting higher risk.
C) are commonly achieved by most investors.
D) are only possible in the long-run.

Question

Quizplus · Accepted Answer

Higher returns typically require accepting higher risk, according to financial theories such as the risk-return tradeoff. This principle suggests that to achieve higher returns, investors must be willing to accept a greater level of risk.

Stock Returns That Are Higher Than 16