Answered

Looking for trustworthy answers? Westonci.ca is the ultimate Q&A platform where experts share their knowledge on various topics. Connect with professionals ready to provide precise answers to your questions on our comprehensive Q&A platform. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform.

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 using our service. We aim to provide the most accurate answers for all your queries. Visit us again for more insights. Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. Westonci.ca is committed to providing accurate answers. Come back soon for more trustworthy information.