Asked by nikki scalera on Jun 22, 2024
Verified
Generally,the lower the risk,the higher the return that can be expected.
Risk
The potential for loss or the chance that an investment's actual return will differ from the expected return, including the possibility of losing some or all of the original investment.
Return
In finance, return refers to the profit or loss generated on an investment over a specific period.
- Understand the principles behind risk and return in investment strategies.
Verified Answer
MS
Mohdeep SinghJun 27, 2024
Final Answer :
False
Explanation :
Generally, the higher the risk, the higher the potential return. Investors expect to be compensated for taking on higher levels of risk. This is known as the risk-return trade-off. However, there are always exceptions and individual situations may vary.
Learning Objectives
- Understand the principles behind risk and return in investment strategies.