Question

Which statement describes the relationship between risks and returns

Answer 1

risks are what challenge you

returns are what have be reversed back to the owner

Answer 2

B. Higher risk often leads to higher potential returns

When one makes an investment there exists a risk to lose he amount invested, when one takes higher risk they are more likely to `lose said investment. In order to compensate for the greater risk one faces with respect to their investment there is a higher potential return obtained from that investment.

Thus, Higher risk often leads to higher potential returns