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Investors are often presented with risky investment opportunities. While high risk is typically avoided by savvy investors, which of the following would the ideal risky investment offer?(1 point)
higher returns and higher liquidity than other investments
higher returns and lower liquidity than other investments
lower returns and higher liquidity than other investments
lower returns and lower liquidity than other investments
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GPT-5 mini
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higher returns and higher liquidity than other investments
Reason: Risk requires compensation in the form of higher expected returns, and investors prefer greater liquidity. An ideal risky investment would therefore offer both higher returns and greater liquidity.
Reason: Risk requires compensation in the form of higher expected returns, and investors prefer greater liquidity. An ideal risky investment would therefore offer both higher returns and greater liquidity.
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