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Ulleksa [173]
2 years ago
11

Assess the trade-offs that investors face when making investment decisions, and provide one example of such a trade-off.

Business
1 answer:
polet [3.4K]2 years ago
7 0

A common trade-off that investors face when making investment decisions is the risk-return trade-off.

A trade-off simply means the situational decision where an economic entity loses one quantity in order to gain something else.

A common trade-off that investors face when making investment decisions is the risk-return trade-off. It should be noted that higher risks are usually associated with more probability of higher return. Also, a lower risk has a greater probability of lower return but it's safer.

In this case, investors are usually faced with making a decision of whether to go for a safer investment or to go for one with more risk that will yield more returns.

Read related link on:

brainly.com/question/25385948

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I attached it because there is no room here.

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