How does the level of risk affect an asset's desirability? A. They are directly related - the higher the level of risk, all else equal, the more attractive the asset. B. They are inversely related - the higher the level of risk, all else equal, the less attractive the asset. C. They are unrelated - an asset's level of risk is unrelated to its desirability.

Question

Jaidyn Shannon

Business

24 April, 19:35

How does the level of risk affect an asset's desirability? A. They are directly related - the higher the level of risk, all else equal, the more attractive the asset. B. They are inversely related - the higher the level of risk, all else equal, the less attractive the asset. C. They are unrelated - an asset's level of risk is unrelated to its desirability.

+1

Answers (1)

Know the Answer?

Douglas Boyer · Answer 1

The correct t answer is A. They are directly related - the higher the level of risk, all else equal, the more attractive the asset.

Explanation:

When the risk associated aged with an asset is high, usually the reward derived from. such an asset tends to be higher as well. This make the asset more attractive and desirable.