Which of the following choices correctly describes the relationship between risk and return?
A) Risk and return have no relationship.
B) Risk and return have a positive relationship.
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 investments with higher risk have the potential for higher returns, while investments with lower risk have lower potential returns.

Which of the Following Choices Correctly Describes the Relationship Between