Question

The principle that safer investments tend to offer lower returns while riskier investments tend to offer higher returns is called
A. the risky principle.

B. cash flow decision.

C. risk-return relationship.

D. the safety factor.

Answer 1

I believe the correct answer from the choices listed above is option C. The principle that safer investments tend to offer lower returns while riskier investments tend to offer higher returns is called risk-return relationship.
Hope this answers the question. Have a nice day.

Answer 2

Whole test

1. identify the risk and potential losses

2. Liability

3. insurance covering losses resulting from medical and hospital expenses as well as income lost form injury or disease.

4. Commercial paper

5. Equity financing

6. Bonds

7. Cash-flow management, financial control, and financial planning

8. Debt financing

9. insurance

10. Risk- return relationship