General Studies · Risk and Return
Which fundamental principle of finance explains why investors are typically risk-averse and demand a higher expected return for taking on greater uncertainty?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The Principle of Risk-Return Trade-off✓
- 2The Principle of Diversification
- 3The Principle of No Arbitrage
- 4The Principle of Time Value of Money
Correct answer
The Principle of Risk-Return Trade-off
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