Investors choose to invest in higher risk investments because these investments offer higher

A) expected returns.
B) inflation.
C) actual returns.
D) future consumption.

Answer: A

Business

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Municipal bonds are _____________ exempt

Fill in the blank(s) with the appropriate word(s).

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Which one of the following will be constant for all securities if the market is efficient and securities are priced fairly?

A. variance B. standard deviation C. reward-to-risk rati D. beta E. risk premium

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