219k views
3 votes
What is the relationship between risk and return?

2 Answers

6 votes

Answer:The risk-return tradeoff states the higher the risk, the higher the reward—and vice versa. Using this principle, low levels of uncertainty (risk) are associated with low potential returns and high levels of uncertainty with high potential returns.

Step-by-step explanation:

User Harsh Bafna
by
4.0k points
4 votes

Answer:

b. Investments with low risk have lower returns on edge

Step-by-step explanation:

User Ali Asjad
by
4.3k points