Investors are always rewarded for taking higher risk with higher realized returns.

Question

Quizplus · Accepted Answer

While it is often assumed that higher risk leads to higher returns, this is not always the case. In fact, investment returns are affected by a variety of factors, including market conditions, investment strategy, and luck. It is possible for investors to take high risks and still experience lower returns, or for conservative investors to achieve higher returns than expected. Ultimately, investors should not rely on generalizations about risk and returns, but instead focus on building a diversified portfolio that aligns with their goals and risk tolerance.

Investors Are Always Rewarded for Taking Higher Risk with Higher