Stockholders expect to earn higher rates of return on investments of lower risk and lower rates of return on investments of higher risk.

Name: Stockholders expect to earn higher rates of return on investments of lower risk and lower rates of return on investments of higher risk.
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Stockholders typically expect higher rates of return on investments with higher risk and lower rates of return on investments with lower risk, due to the risk-return tradeoff principle.

Stockholders Expect to Earn Higher Rates of Return on Investments