Indifference curves depicting an investors trade-off between expected return on investment and risk are upward sloping becausee

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    a greater amount of risk is required for investors to be satisfied that their rate of return exceeds the price of risk.
     a risk averse investor requires a higher expected rate of return as the level of risk increases.
     a risk loving investor requires a higher expected rate of return as the level of risk increases.
     a lower amount of risk is required for investors to be satisfied that their rate of return exceeds the price of risk.
asked Jun 2, 2013 in Economics by anonymous
    

1 Answer

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a risk averse investor requires a higher expected rate of return as the level of risk increases.
answered Jun 3, 2013 by Xyz ~Expert~ (3,650 points)

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