Hello everyone, I’m a commerce student from India and I’m having a doubt in financial management. Can someone help me understand the concept of risk and return trade-off in investments? I’m finding it a bit confusing. Thank you!
In investments, risk and return go hand in hand. The general principle is that higher returns are expected from riskier investments, while lower returns are expected from safer investments. It means that an investor should be compensated with higher potential returns for taking on greater levels of risk.
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