Final answer:
The statement is true. Risk and return have a direct relationship in investing. This tradeoff is a key consideration in financial investment decisions and varies according to different time frames and types of investments like stocks, bonds, and savings accounts.
Step-by-step explanation:
When it comes to investing, risk and return have a direct relationship. This means that the higher the risk of an investment, the higher its expected return.
For example, investing in stocks is generally riskier than investing in bonds, but stocks also tend to offer higher returns over a sustained period. However, it is important to note that risk and return can vary depending on individual investments and market conditions.