SESKStuff Everyone Should Know
SESK: Stuff Everyone Should Know · sesk.info/teen-invest-risk-return

As the risk of an investment rises, what do investors generally want?

Higher returns to compensate.

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  1. Lower returns
  2. No returns
  3. Higher returns ✔

Why: Taking more risk means you could lose more, so investors want a bigger possible reward. A higher possible return is not a guarantee.

Huh, didn't know that: Securities you own are not insured against loss in value.

The dad joke
There are two times in a man's life when he should not speculate: when he can't afford it, and when he can. (Mark Twain)
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References

Answer: Higher returns. Taking more risk means you could lose more, so investors want a bigger possible reward. A higher possible return is not a guarantee.

  1. Investor.gov: What is risk? www.investor.gov/introduction-investing/investing-basics/what-risk
    In general, as investment risks rise, investors seek higher returns to compensate themselves for taking such risks.
    Checked 2026-10-10.

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