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09-03-2020
Business

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As an investor and based on your understanding of risk, which of the following statements is true?

(A) You should invest in a stock if the expected rate of return on an asset with similar risk is higher than the expected rate of return from the stock.
(B) You should invest in a stock if the expected rate of return from the stock is greater than the expected rate of return on an asset with a similar risk.

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Mona0991 Mona0991

14-03-2020

Answer: B. You should invest in a stock if the expected rate of return from the stock is greater than the expected rate of return on an asset with a similar risk.

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