Asked by YvngIV Prnxe on Sep 24, 2024
Verified
Low risk stocks are usually accompanied by
A) low returns
B) no returns
C) high returns
D) no sales-no one would buy low risk stocks
Low Risk Stocks
Shares of companies with a stable performance history, offering lower risk of loss but also potentially lower returns compared to high-risk stocks.
Low Returns
Financial returns from an investment that are below expectations or the market average.
- Learn about the equilibrium behavior of investors with respect to risk and return characteristics of assets.
Verified Answer
AA
Abood Abualrob1 day ago
Final Answer :
A
Explanation :
Low risk stocks are usually accompanied by low returns as investors are willing to take on less risk for lower potential gains.
Learning Objectives
- Learn about the equilibrium behavior of investors with respect to risk and return characteristics of assets.
Related questions
In Equilibrium,low Risk Assets Earn a _______Return Than High Risk ...
In Equilibrium,high Risk Stocks Would Typically Be Accompanied By ...
Risk Is the ________ About the Return an Investor Expects ...
A Project Has a 60% Chance of Doubling Your Investment ...
You Are Considering Adding a New Security to Your Portfolio ...