What does the risk-return tradeoff suggest?
A) The greater the risk, the greater the return.
B) The lower the risk, the greater the return.
C) The greater the risk, the lower the return.
D) With no risk, there is no return.

Question

Quizplus · Accepted Answer

The risk-return tradeoff suggests that there is a positive correlation between risk and return, meaning that the greater the risk undertaken, the greater the potential return. Therefore, choice A is the best answer.

What Does the Risk-Return Tradeoff Suggest