Figure: Risk Refer to the figure. Which curve in the diagram correctly identifies the relationship between risk and return?

Name: Figure: Risk Refer to the figure. Which curve in the diagram correctly identifies the relationship between risk and return?
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Question

Figure: Risk  Refer to the figure. Which curve in the diagram correctly identifies the relationship between risk and return?

Quizplus · Accepted Answer

Curve B shows a positive relationship between risk and return, which is the most commonly observed relationship in financial markets. As the level of risk increases, expected return also increases.

Figure: Risk Refer to the Figure