Investors with a _____ Will Demand a Higher Rate of Return

question 41

Multiple Choice

Investors with a _____ will demand a higher rate of return.

• A) higher time preference for consumption
• B) lower exposure to economic risks
• C) lower access to production opportunities
• D) higher financial creditworthiness
• E) lower default premium

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Definitions:

Authority

The authority to command, decide, and ensure compliance.

Non-Corporate Entity

A business structure that is not incorporated, such as partnerships, sole proprietorships, and limited liability companies.

Limited Partnership

A partnership consisting of at least one general partner, who manages the business and is personally liable for debts, and one or more limited partners, who invest but do not manage the business and are not personally liable.

Citizenship

The status of being a legally recognized subject or national of a state or commonwealth with associated rights and duties.