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 reflects the relationship between the level of risk associated with an investment and the level of return expected from it. Higher risk investments are expected to generate higher financial returns, while more conservative investments are likely to result in lesser returns. The other options are not directly related to the risk-return principle.

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