To convince investors to accept greater volatility, you must:

Name: To convince investors to accept greater volatility, you must:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Increasing the risk premium compensates investors for accepting greater volatility. It is not feasible to decrease the risk premium, real return, or risk-free rate as it would make the investment less attractive to investors. Increasing the risk-free rate is also not a viable option as it does not directly address the issue of volatility.

To Convince Investors to Accept Greater Volatility, You Must