Risk and return are ____ related.

Name: Risk and return are ____ related.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Risk and return are directly related, meaning that as the risk of an investment increases, so does the potential return. Conversely, as the risk decreases, so does the potential return. This relationship is fundamental to investing and is commonly referred to as the risk-return tradeoff. It is important for investors to understand this relationship in order to make informed decisions about allocating their capital.

Risk and Return Are ____ Related