Question

Which of the following risk-return statements is true? Group of answer choices Higher returns mean greater risk. Liquidity and return move up and down together. Higher risk is associated with higher liquidity. Lower risks are associated with less liquid assets.

Answer 1

The true statement about the following risk-return option is that a higher returns mean greater risk.

What is a risk return?

As associated with investment risk, its involves the notion that the higher the risk, the higher the return on an investment and vice versa.

Hence, the true statement about the following risk-return option is that a higher returns mean greater risk.

Therefore, the Option A is correct.

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