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which statement is true?
a. as the risk of an investment decreases, the opportunity of gains increases.
b. as the risk of an investment decreases, so does the potential for its return.
c. as the risk of an investment increases, its market value increases.
d. as the risk of an investment increases, the opportunity of gains decreases.
e. as the risk of an investment increases, its market value decreases.
Answer is B: As the risk of an investment decreases , so does the potential for its return.
Explanation:
Previous answer is wrong. Just because the Risk increases the market values i not guaranteed to increase. The potential for for an increased return increases.
As Risk increases the POTENTIAL for the Return Increases.
As the Risk of an Investment decreases the POTENTIAL for the Return Decreases.
the statement that is true is c