In considering the share price effect on risk-return trade-offs, our goal should always be to earn the highest return possible.

Question

Quizplus · Accepted Answer

The statement is false. In investing, we must consider not only the potential return but also the level of risk involved. Higher returns often come with higher risks, and it is essential to find a balance between the two that aligns with our investment goals and risk tolerance. Simply aiming for the highest return possible can be risky and may not result in the best risk-return trade-off.

In Considering the Share Price Effect on Risk-Return Trade-Offs, Our