Historically,the ________ risk an investor is willing to accept,the ________ the potential return for the investment.
A)more; lesser
B)less; greater
C)more; greater
D)Historically,the risk/return trade-off has not played out in any particular manner.

Question

Quizplus · Accepted Answer

This is a well-known principle in finance, known as the risk/return trade-off. Generally, investors expect to receive greater returns on investments that carry higher levels of risk. Conversely, they expect lower returns on investments that are less risky. This relationship is not always linear or consistent, but it tends to hold true over long periods of time. Therefore, the more risk an investor takes on, the greater the potential return for the investment.

Historically,the ________ Risk an Investor Is Willing to Accept,the ________

Historically,the Risk an Investor Is Willing to Accept,the