A lower rate of return is received by higher risk in investments is a false statement.
What is a risk?
Risk refers as the possibility or chances of loss in a particular situation that hampers the financial stability of any individual for a certain period of time. This represents the chances of occurring of unfavorable event.
The risk and return are correlated to each other, it shows higher risk leads to the higher potential returns of profit and loss due to large investments. Lower chances of risk lead to a lower return amount on the investment in the business.
Therefore, the statement is false about lower return on higher risk.
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