Question

What's the relationship between risk and return?

Answer 1

Answer:

A. a higher risk often means higher return.

Step-by-step explanation:

Risk and return, risk is the chance you have of not gaining anything out of an investment or loosing money, this high risk investments often have higher rewards or returns in order to be more appealing to investors and in that way people will invest in those enterprises or products.

Answer 2

A higher risk often means higher return. Option (a) is correct.

Further explanation:

Given:

The options are as follows,

(a). A higher risk often means higher return.

(b). A higher risk often means a lower return.

(c). A lower risk will always mean a lower return.

Explanation:

Return is a type of interest or profit on the investment. The benefit you get is the return on the investment.

A higher risk may often means higher return is correct. If a person invests in greater risk he or she will only invest if the return is higher.

Option (a) is correct.

A higher risk often means a lower return is not correct. If a person invests in greater risk he or she will only invest if the return is higher.

Option (b) is not correct.

A lower risk will always mean a lower return is not correct. If a person invests in greater risk he or she will only invest if the return is higher.

Option (c) is not correct.

A higher risk often means higher return. Option (a) is correct.

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Answer details:

Grade: High School

Subject: Mathematics

Chapter: Investments and Return

Keywords: risk, return, relationship between, higher risk, means, often, higher return, lower risk, lower return, mean, high demand, often means, always mean.