Answered

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Which of the statements below best describes the relationship between risk and return when considering an investment?
a. investors expect to earn a lower return when they invest in a risky asset
b. investors expect to earn a higher return when they invest in a low risk asset, like a bond
c. investors expect to earn a higher return when they invest in a high risk asset like stock in a small company
d. investors do not expect to earn a return on a high risk investment but rather expect to lose their money

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