The more risky an investment, the greater the investor's expected return and the greater the probability of less than desireable results.

Question

Quizplus · Accepted Answer

This is the general principle of risk and return. Investors expect to be compensated for taking on more risk with a greater return, but there is also a higher likelihood of losing money or experiencing less desirable results.

The More Risky an Investment, the Greater the Investor's Expected