8.4k views
4 votes
Why do investors Require higher returns for some investments

User Numeron
by
7.3k points

2 Answers

4 votes

Answer: to compensate for greater risk

Step-by-step explanation:

User Binoy Dalal
by
7.4k points
3 votes
Some investors require higher returns for some investments as they judge that their investment carried a significant amount of risk with it - for that reason they also want a higher return for their investment - so that it pays off for them. 
User Pauloh
by
7.1k points