What is the general relationship between risk and return?
A) These two factors are not related.
B) As risk increases, returns will decrease.
C) They are directly related to one another.
D) Risk is the chance for loss, whereas return is the chance for speculation.
E) As returns increase, the risk involved decreases.

Question

Quizplus · Accepted Answer

The general relationship between risk and return is directly related, meaning that as risk increases, returns also increase. This is because riskier investments typically have the potential to produce higher returns to compensate for the additional risk. However, this does not mean that all high-return investments are necessarily high-risk, or vice versa. It is important to consider both factors when making investment decisions.

What Is the General Relationship Between Risk and Return