The risk-return trade-off refers to the fact that:
A)low risk means high potential returns.
B)high risk means low potential returns.
C)high risk means high potential returns.(True Answer )Correct
D)low risk can be eliminated by high returns.

Question

Quizplus · Accepted Answer

The risk-return trade-off states that higher potential return comes with higher risk. This means that if an investor desires higher returns, they must be willing to take on more risk. Therefore, choice C is the best answer because it accurately reflects the risk-return trade-off concept.

The Risk-Return Trade-Off Refers to the Fact That