Which of the following choices correctly describes therelationship between risk and return?
A)Risk and return have no relationship.
B)Risk and return have a positive relationship.(True Answer )Correct
C)Zero risk instruments have the highest returns.
D)The lower the risk is, the higher the return.

Question

Quizplus · Accepted Answer

Risk and return have a positive relationship, meaning that higher risk investments have the potential for higher returns, while lower risk investments typically offer lower returns. This relationship is a fundamental principle of finance and is demonstrated by the risk-return tradeoff.

Which of the Following Choices Correctly Describes Therelationship Between Risk