Identify the Assumption in Renewable Energy Investment

Easy Assumption Identify Assumptions

An investor recently stated, "If we increase our investment in renewable energy projects, we will see higher long-term returns on our overall portfolio. Therefore, investing in renewable energy is essential for future growth."

Which of the following is an assumption underlying the investor's conclusion?

Investing in renewable energy projects will not lead to immediate losses.

The market for renewable energy projects will continue to grow.

Higher initial costs are worthwhile for long-term gains.

All investments in the portfolio have the same level of risk.

Investors do not prefer traditional energy investments over renewable ones.

Hint

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