All other factors held constant, an investment:

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Quizplus · Accepted Answer

This is because investors demand a higher return to compensate for taking on more risk. As a result, investments with more risk will typically sell for a lower price (due to the higher perceived risk) and offer a higher return (to compensate for that risk). Conversely, investments with less risk will sell for a higher price (because they are perceived as safer) and offer a lower return (since there is less demand for higher returns to compensate for lower risk).

All Other Factors Held Constant, an Investment