The basic trade-off in valuing any asset is between:
A) amount of risk and rate of return.
B) rate of return and length of loan.
C) amount of risk and length of loan.
D) rate of return and amount of loan.

Question

Quizplus · Accepted Answer

The basic trade-off in valuing any asset is between the amount of risk and rate of return. Higher risk assets typically offer higher potential returns, but also carry a greater chance of losing money. Therefore, investors must determine the appropriate balance between risk and return based on their individual tolerance for risk and investment objectives.

The Basic Trade-Off in Valuing Any Asset Is Between