91.9k views
3 votes
What does the phrase high risk = High reward mean when it comes to investing?

User Adar Hefer
by
4.5k points

1 Answer

7 votes

Answer: The phrase “higher risk, higher reward” is used in the general sense to set ratios between riskier stocks and more stable bonds and cash holdings. Investors adjust their risk according to their station in life.

Step-by-step explanation:

User Collin Henderson
by
4.8k points