There is a __________ between risk and return which is at the heart of understanding financial decisions
A) rule.
B) difference.
C) zero sum game.
D) trade-off.

Question

Quizplus · Accepted Answer

The concept of a trade-off is at the heart of understanding financial decisions. Investors face a trade-off between risk and return, meaning that potentially higher returns come with a greater level of risk. In order to make sound financial decisions, investors must consider this trade-off and determine how much risk they are comfortable taking on in exchange for potentially higher returns.

There Is a __________ Between Risk and Return Which Is