When it comes to investing, what is the typical relationship between risk and return?




A



The greater the potential risk, the smaller the potential return.



B



The greater the potential risk, the greater the potential return.



C



There is no relationship between risk and return.



D



It depends on the investment mix in your portfolio.

Verified Answer :

d i would think im not shure thoe

The correct answer is;

B
.The greater the potential risk, the greater the potential return
.

In order to run a business and convert an administrator, a person must have the ability to take and bear the risk. Risk presence is a key to any business.


When it approaches to investing, one general relationship between risk and reward is that taking more risk is correlated with a greater return. However, in many cases, there is no connection between the two. For example, even though stocks tend to have a higher return than relationships, taking that risk does not establish a genuine return.


The risk is the feasible amount of damage the business might have to face. While the return is the value of interest the business may receive.