When it comes to investing, what is the typical relationship between risk and return?



A


The greater the potential risk, the smaller the potential return.


B


The greater the potential risk, the greater the potential return.


C


There is no relationship between risk and return.


D


It depends on the investment mix in your portfolio.

Respuesta :

d i would think im not shure thoe

The correct answer is;

B .The greater the potential risk, the greater the potential return.

In order to run a business and convert an administrator, a person must have the ability to take and bear the risk. Risk presence is a key to any business.

When it approaches to investing, one general relationship between risk and reward is that taking more risk is correlated with a greater return. However, in many cases, there is no connection between the two. For example, even though stocks tend to have a higher return than relationships, taking that risk does not establish a genuine return.

The risk is the feasible amount of damage the business might have to face. While the return is the value of interest the business may receive.

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