Investors will be indifferent between two investments if both investments have the same expected return.

Name: Investors will be indifferent between two investments if both investments have the same expected return.
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Question

Quizplus · Accepted Answer

Investors consider factors other than expected return, such as risk and liquidity, when deciding between two investments. Therefore, they may not be indifferent between two investments with the same expected return if one is riskier or less liquid than the other.

Investors Will Be Indifferent Between Two Investments If Both Investments