In the long run, the rate of return on a capital investment is, on average, directly related to its risk.

Name: In the long run, the rate of return on a capital investment is, on average, directly related to its risk.
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This is because higher risk investments generally have the potential for higher returns, but also the potential for larger losses. Lower risk investments, on the other hand, typically offer lower returns but with less potential for losses.

In the Long Run, the Rate of Return on a Capital