Asked by Rachael Petersen on May 05, 2024
Verified
Risky securities have higher average returns than riskless securities.
Risky Securities
Financial instruments that carry a high degree of investment risk due to the potential for significant fluctuations in value.
Riskless Securities
Financial instruments that are considered to have minimal risk of loss, typically issued by governments.
- Discern the differences between risk and return principles.
Verified Answer
TA
Taryn AshleighMay 11, 2024
Final Answer :
True
Explanation :
Risky securities typically offer higher average returns than riskless securities to compensate investors for taking on the higher risk associated with these investments.
Learning Objectives
- Discern the differences between risk and return principles.
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