The higher the risk premium, the safer the investment.

Name: The higher the risk premium, the safer the investment.
Brand: Quizplus
Rating: 4.9 (49 reviews)

Question

Quizplus · Accepted Answer

The higher the risk premium, the riskier the investment. Risk premium is the excess return that an investor expects for taking on additional risk. Investments with higher risk premiums are typically considered riskier because they offer higher potential returns, but also come with a higher chance of losing money.

The Higher the Risk Premium, the Safer the Investment