Which of the Following Statements Best Describes the Relationship Between

question 3

Multiple Choice

Which of the following statements best describes the relationship between risk and the average expected return of investments?

• A) Less risky assets will have similar average expected rates of return to more risky assets.
• B) Less risky assets will have higher average expected rates of return than more risky assets.
• C) More risky assets will have higher average expected rates of return than less risky assets.
• D) More risky assets will have lower average expected rates of return than less risky assets.

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