One widely accepted financial principle is that a tradeoff exists between:
A)discount brokers and full-service brokers.
B)common stock and corporate stock.
C)risk and return.
D)savings and bonds.

Question

Quizplus · Accepted Answer

The principle of risk and return refers to the fact that higher returns are generally associated with higher risk. In other words, if someone wants to potentially earn a higher return, they must be willing to take on more risk. This tradeoff is fundamental to investing and is a key concept that investors need to understand.

One Widely Accepted Financial Principle Is That a Tradeoff Exists