When choosing which types of assets to hold, the buyer must determine the trade-off between:

Question

Quizplus · Accepted Answer

When choosing which types of assets to hold, the buyer must determine the trade-off between risk and return. Higher risk assets typically have the potential for higher returns, but also come with a greater possibility of losses. Lower risk assets may offer more stability, but typically have lower returns. It is up to the buyer to determine their risk tolerance and investment goals in order to make the best choice. Unemployment, economic growth, inflation, and recession may all have an impact on the performance of certain assets, but the primary trade-off to consider is between risk and return.

When Choosing Which Types of Assets to Hold, the Buyer