Answered

Westonci.ca is your go-to source for answers, with a community ready to provide accurate and timely information. Our platform offers a seamless experience for finding reliable answers from a network of knowledgeable professionals. Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields.

An investor should expect to receive a risk premium for:

A. Lower consumer prices.
B. Expected lower inflation.
C. Reduced credit ratings.

Sagot :

GinnyAnswer

Final answer:

Investors expect a risk premium to compensate for the borrower's riskiness in investments.


Explanation:

Risk premium compensates holders for risks inherent to an investment and is incorporated into the rate of return quoted for an investment. Investors expect a risk premium to account for the borrower's riskiness. For example, when comparing assets with similar coupon rates but different maturities, the asset with a longer time to maturity will have a higher yield due to the risk premium for time to maturity.


Learn more about Risk premium in investments here:

https://brainly.com/question/38008727


Thanks for stopping by. We are committed to providing the best answers for all your questions. See you again soon. We appreciate your time. Please revisit us for more reliable answers to any questions you may have. Your questions are important to us at Westonci.ca. Visit again for expert answers and reliable information.