Taking more risk means potential for
A) higher returns and no losses.
B) lower returns and higher losses.
C) higher returns and losses.
D) lower returns and losses.
E) higher returns and lower losses.

Question

Quizplus · Accepted Answer

Financial theory would say that in order to induce most people to take larger risks, there must be an increased possibility for return. However, taking more risk means that not only do you have the potential for higher returns, you also have the potential for higher losses.

Taking More Risk Means Potential for