Rational investors are unwilling to choose an investment that has additional risk but does not offer additional reward.

Name: Rational investors are unwilling to choose an investment that has additional risk but does not offer additional reward.
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This is a basic principle of finance known as the "risk-return tradeoff." Investors expect to be compensated for taking on additional risk, so they will only choose investments that offer a higher expected return commensurate with the added risk.

Rational Investors Are Unwilling to Choose an Investment That Has