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krok68 [10]
1 year ago
12

How does the relationship between risk and expected return serve to allocate capital in a market?

Business
1 answer:
Arte-miy333 [17]1 year ago
7 0

The relationship between risk and expected return serves to allocate capital in a market. Investors want to maximize return for a given level of risk, so capital flows to its most efficient use.

There is a positive correlation between the level of risk taken and the level of return expected. The greater the risk, the greater the expected return and the greater the likelihood of suffering a large loss.

The relationship between risk and expected return is called the risk-return relationship. This is a positive relationship because the more risk you take, the higher the required return that most people demand. Risk aversion describes a positive risk-reward ratio.

Learn more about risk and expected return at

brainly.com/question/25821437

#SPJ4

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Answer and Explanation:

The subject of the email is too long and contains all the information. The subject should have been: Proposal draft due on Friday. Rest of the information should have been included in the body of the email.

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percentage of total industry sales accounted for by the largest firms in the industry.

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<span>An opportunity cost of an investment is the difference between the return of an investment taken and the return of another investment that one had not taken. It is the forgone opportunity of an investment not taken or pursued. It is the amount of money one could have made had one chosen to pursue the other investment.  </span>

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What is the most accepted time frame associated with the MOV SEP code?
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The inference is that the most accepted time frame associated with the MOV SEP code is 60 days or 2 months.

<h3>What is an inference?</h3>

An inference is the conclusion that can be deduced based on an information.

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