Answer: Pay less for the security that has higher risk
Explanation:
According to the given scenario, he can expecting for paying less amount for the security which typically has the high amount of security risk in the system.
The higher risk is one of the concept that is associated with the fair return process based on the given systematic risk in the system and the investor is facing the risk return trade off issue.
The investors are anticipating the fair return process in which the investors are investing in the various types of security purpose. Therefore, The given answer is correct.
