If you want to increase the potential annual return on your investment, you probably will need to:
A) Increase your investment in bonds and lower your investment in stocks
B) Increase your investment in T-bills and lower your investment in corporate bonds
C) Reduce the standard deviation of your returns
D) Reduce the expected variability of your returns
E) Increase your portfolio's level of risk

Question

Quizplus · Accepted Answer

Increasing the portfolio's level of risk typically leads to higher potential returns, as risk and return are positively correlated. However, it's important to consider one's risk tolerance and investment goals before making any changes to the portfolio.

If You Want to Increase the Potential Annual Return on Your