higher
lower
zero
all of above
Answer is Right!
Answer is Wrong!
The correct answer is A. higher.
The higher the risk of an investment, the higher the return that investors expect to earn. This is because investors are willing to take on more risk only if they are compensated for it.
There are a number of factors that can affect the risk of an investment, including the company’s financial health, the industry it operates in, and the overall economic environment. Investors should carefully consider all of these factors before investing in any stock.
Here is a brief explanation of each option:
- Option A: Higher. As mentioned above, the higher the risk of an investment, the higher the return that investors expect to earn.
- Option B: Lower. This option is incorrect because investors are not willing to take on more risk unless they are compensated for it.
- Option C: Zero. This option is also incorrect because investors expect to earn a return on their investment, even if the investment is low-risk.
- Option D: All of the above. This option is correct because the higher the risk of an investment, the higher the return that investors expect to earn.