1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
schepotkina [342]
3 years ago
12

What is the relationship between risk and return?

Business
1 answer:
PolarNik [594]3 years ago
8 0

Answer: A higher risk often means a higher return.

Explanation: Risk can be defined as the potential effect of an event, determined by combining the likelihood of the event occurring with the effect that it should occur.

Return can be defined as a gain or loss from an investment.

The relationship between risk and return is that the higher the risk, the higher the returns, however, a higher risk has a potential for loss. Hence, the word often in the statement "A higher risk often means a higher return."

A lower risk does not always mean a lower return, a lower risk has a potential for a higher return.

You might be interested in
Match the term with what most needs to be clarified within the following examples.
leonid [27]

Intention is a mental state that represents a commitment to carrying out an action or actions in the future. Intention involves mental activities such as planning and forethought.

Definition  

Folk psychology explains human behavior on the basis of mental states, including beliefs, desires, and intentions. Mental mechanisms, including intention, explain behavior in that individuals are seen as actors who have desires and who attempt to achieve goals that are directed by beliefs. Thus, an intentional action is a function to accomplish a desired goal and is based on the belief that the course of action will satisfy a desire. Searle  labeled these as intention-in-action and prior intention respectively. Prior intentions reflect forethought about intentions-in-action; prior intentions do not need to be carried out to be considered intentions. Theory of mind research attempts to map how children come to understand the mind as a representational device for the world. This research has focused on the development of knowledge that others have beliefs, desires, and intentions that are different from one's own. A basic ability to comprehend other people's intentions based on their actions is critical to the development of theory of mind. Second, intentions are integral to an understanding of morality. Children learn to assign praise or blame based on whether actions of others are intentional. Intention is also necessary to understand and predict the plans and future actions of others. and the achievement of cooperative goals. Social, cognitive and developmental psychological research has focused on the question: How do young children develop the ability to understand other people's behaviors and int

5 0
3 years ago
An industry with oligopolistic competition faces falling profits and its sales growth is slow. Demand for individual brands has
viva [34]

Answer: (A) Market maturity

Explanation:

The market maturity is one of the stage in the product life cycle where is basically refers to the sales growth where the product sales growth get increased and then suddenly get slows down.

The market maturity stage is basically known as the longest stage in the product life cycle. In this life cycle stage the organization reaches to the highest level during the demand cycle.

Therefore, Option (A) is correct.  

8 0
3 years ago
Discuss the relationship between bond prices and interest rates. What impact do changing interest rates have on the price of lon
Doss [256]

Interest rates and bond prices have an adverse correlation. Bond prices grow during periods of low-interest rates and decline during periods of high-interest rates.

<h3>What is the interest rate?</h3>

The cost of borrowing and the rewards for saving are both indicated by the interest rate. Since there is a premium if the coupon rate is higher than the market rate, the bond's price will be higher. Bond prices will decrease if the coupon rate is lower because there will be a discount.

The price of long-term bonds is more affected by interest rates than the price of short-term bonds. A bond's price varies depending on how long it is.

Learn more about bond prices, here:

brainly.com/question/15518377

#SPJ1

5 0
2 years ago
Objectives are both targets and what?
icang [17]

OMG! So easy! C.Threats.

5 0
3 years ago
What method for improving strategic decision making involves having a separate team or individual carefully analyze and critique
Debora [2.8K]

The method for improving strategic decision making involves having a separate team or individual carefully analyze and critique the underlying assumptions and potential downsides of a proposed course of action is called as Devils Advocacy.

<h3>What is Devils Advocacy?</h3>

Devils Advocacy refers to the method in which the person provokes the other person to have arguments and debate with the other. It is done to test the other person strength to make the strong arguments.

It can be done for the right decision when to correct the thinking of the other person also to have the racial approach to the situation.

Learn more about Strategic decision Making here:

brainly.com/question/5803344

#SPJ1

6 0
2 years ago
Other questions:
  • Which area of study involves microeconomics?
    7·2 answers
  • QS 12-15 Computing financing cash flows LO P3 The following information is from Princeton Company’s comparative balance sheets.
    8·1 answer
  • ____Can speed up the alcohol absorption
    13·1 answer
  • Social regulation : A. is more concerned with the overall standard of living of society rather than with details of production p
    7·1 answer
  • Elliot wants to open a checking account.
    8·2 answers
  • Suppose that 6-month, 12-month, 18-month, 24-month, and 30-month zero rates are 3%, 3.2%, 3.4%, 3.5%, and 3.6% per annum with co
    8·1 answer
  • Journalize the following transactions for Pharoah Company. (If no entry is required, select "No Entry" for the account titles an
    8·2 answers
  • *20 points and Brainliest for right answer ASAP**<br> In a SWOT analysis, what are strengths?
    6·2 answers
  • Harley signs a check payable to Pro Accountants, P.C., and gives it to Pro, leaving the amount blank but authorizing the firm to
    7·1 answer
  • The liquidity preference model: a uses the demand and supply of money to determine the level of potential output. b uses the dem
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!