"Risk Aversion" Implies That Investors Require Higher Expected Returns on Riskier

question 139

True/False

"Risk aversion" implies that investors require higher expected returns on riskier than on less risky securities.

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Definitions:

Ownership Rights

Legal rights that confer the ability to use, manage, and enjoy the benefits of an asset or property.

Personally Liable

The state of being legally responsible for a debt or obligation in a personal capacity, not as a corporation or other entity.

Corporate Shares

Units of ownership in a corporation, representing a portion of the corporation's capital.

Approval Of Stockholders

The formal consent given by shareholders, typically through voting, to authorize corporate actions or decisions.