An investor who is risk averse requires lower rates of return for assets of higher risk.

Name: An investor who is risk averse requires lower rates of return for assets of higher risk.
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An investor who is risk averse requires higher rates of return for assets of higher risk. This is because they are willing to accept lower returns for safer assets but require compensation for taking on riskier investments.

An Investor Who Is Risk Averse Requires Lower Rates of Return