Investors purchase assets as a way of saving for the future.
Anytime an asset is purchased the purchaser is forgoing current consumption for future consumption. Thus investors would like to have as high a rate of return on their investments as possible. The rate of return is, This means that the rate of return on a domestic interest bearing account is merely the interest rate. The second primary concern of an investor is the riskiness of the assets. Generally, the greater the expected rate of return, the greater the risk.