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Explain incentive to take more risk concept with appropriate

example. (Do not use numerical values from Enter question
textbook )

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Incentives to
take more risk:
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Risk is a probabilty of loss in certain type of investment.
Where risk is high, it means Chances of loss is high. phone to post a question
To explain
more, it means, either amount invested will not generate any income
or in worse cases capital
We'll send you a one-time download
invested might also be lost. link

So number of investors, for high risk projects, are low. Not

everyone is keen to take such high risk. As the
supply of funds for
such project is low, expected returns from such projects are
comparablly very high, in
to order to attract investments.
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From Investors point of view, s/he should be able to leverage on

higher risk assumed, where other By providing your phone number, you agree to receive a one-tim
investors backed out. Thus their
expectations from such an investment is high. On a comparable
basic, if automated text message with a link to get the app. Standard
messaging rates may apply.
the same investor invests in some less risk/risk free
investment, s/he is more sure of getting a return, so
s/he will
invest in other high risk investments only when such invested gives
more returns than less risk/risk
free investments.

Thus, the concept of Higher the risk, higher the returns is

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