Underlying the evaluation of an investment is the trade-off between:
A) expected return and actual return.
B) low risk and high risk.
C) actual return and high risk.
D) expected return and risk.

Question

Quizplus · Accepted Answer

The fundamental trade-off in investment evaluation is between expected return and risk. Investors aim to maximize returns while minimizing risk, making this the primary consideration in investment decisions.

Underlying the Evaluation of an Investment Is the Trade-Off Between