Investors must be compensated for nondiversifiable and diversifiable risk, as well as time preference.
What is Investor?
An investor is a person who invests money in the hope of making a profit or gaining an advantage in the future (interest). The majority of the time, the investor purchases some kind of property using this allocated capital. Equity, debt, securities, property investment, infrastructure, money, commodities, tokens, derivatives like call and put options, futures, and forwards are a few examples of investment types. There is no distinction between primary market investors and secondary market investors in this definition. In other words, both individuals who invest money in a company and those who purchase stock do so. A shareholder is an investor who holds shares of stock.
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