A return of 15 percent might actually be worse than a return of 10 percent.

Question

Quizplus · Accepted Answer

A return of 15 percent might seem better than a return of 10 percent, but it's important to consider the level of risk involved in achieving those returns. If the 15 percent return was earned by taking on significantly more risk than the 10 percent return, then the 10 percent return may actually be better on a risk-adjusted basis. In other words, investors should compare returns relative to the amount of risk taken to generate those returns.

A Return of 15 Percent Might Actually Be Worse Than