Investors generally don't like risk.Therefore,a typical investor
A) will not be induced to take on any risk.
B) will only take on the least risk possible.
C) will only take on additional risk if he expects to be compensated in the form of additional return.
D) will only accept a zero return if the risk is zero.

Question

Quizplus · Accepted Answer

Investors generally expect to be compensated for risk with additional return. Therefore, they may be willing to take on additional risk if they believe the potential return justifies it. However, it's unlikely that they would accept zero return, even if the risk is zero, as they typically look to earn some return on their investments. Choice A is not accurate, as many investors are willing to take on some degree of risk in order to achieve higher returns. Choice B may be true for some investors, but not all.

Investors Generally Don't Like Risk.Therefore,a Typical Investor