The ____ ratio is based on the principle that a high-risk investment should generate higher financial returns for a business and more conservative decisions often generate lesser returns.
A) return on owners' equity
B) risk-return
C) earnings
D) investment-to-equity
E) quick return

Question

Quizplus · Accepted Answer

The risk-return ratio is specifically designed to measure the return on investments in terms of the level of risk involved in the investment. In general, riskier investments should yield higher returns while less risky investments should generate lower returns.

The ____ Ratio Is Based on the Principle That a High-Risk