Rational investors would consider an investment in a risky business venture only if they feel the expected return is high enough to justify the

Question

Quizplus · Accepted Answer

Rational investors would only take on the additional risk of a business venture if they believe the expected return is sufficient to compensate for that risk. In other words, the potential reward has to be high enough to justify the increased risk. Therefore, choice A is the correct answer. None of the other options mentioned in the answer choices play a direct role in the investor's decision-making process.

Rational Investors Would Consider an Investment in a Risky Business