The risk-return relationship means
A) the lower the risk, the higher the return.
B) the higher the risk, the lower the return.
C) the higher the risk, the higher the return.
D) risk and return have little or no correlation.

Question

Quizplus · Accepted Answer

The risk-return relationship in finance suggests that investments with higher risk typically offer higher potential returns to compensate investors for taking on more risk.

The Risk-Return Relationship Means