When do investors expect a higher rate of return on their investments?
A) When there is greater uncertainty
B) When the investment requires less upfront capital
C) When the investment is stable
D) When there is a short time commitment
E) When the investment is for a larger share of the offering

Question

Quizplus · Accepted Answer

Investors expect a higher rate of return on their investments when there is greater uncertainty. This is because uncertainty implies higher risks, and investors demand higher returns to compensate for the risks they are taking.

When Do Investors Expect a Higher Rate of Return on Their