The rule that higher risk demands greater return is called the risk return:
ATrade mark
BTrade wind
CTrade off
DTrade fair
Answer & Solution
Correct answer: C. Trade off
1. Investors must be paid for danger.
2. One quantity is exchanged for the other.
3. That rule is the risk return trade off.
_Source: OpenStax Introduction to Business, Chapter 16, Understanding Financial Management and Securities Markets._
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