Question

How does the level of risk affect an​ asset's desirability? A. They are directly related​ - the higher the level of​ risk, all else​ equal, the more attractive the asset. B. They are inversely related​ - the higher the level of​ risk, all else​ equal, the less attractive the asset. C. They are unrelated​ - an​ asset's level of risk is unrelated to its desirability.

Answer 1

Answer:

The correct t answer is A. They are directly related​ - the higher the level of​ risk, all else​ equal, the more attractive the asset.

Explanation:

When the risk associated aged with an asset is high, usually the reward derived from.such an asset tends to be higher as well. This make the asset more attractive and desirable.