Generally, an increase in risk will result in ________ required return or interest rate.
A) a lower
B) a higher
C) an unchanged
D) an undetermined

Name: Generally, an increase in risk will result in ________ required return or interest rate. A) a lower B) a higher C) an unchanged D) an undetermined
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Question

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Investors require a higher return or interest rate to compensate for an increase in risk. They demand a premium for taking on riskier investments, which results in a higher required return.

Generally, an Increase in Risk Will Result in ________ Required