Sign In
Ask Question
Reginald Daniel
Business
28 June, 13:52
What relationships does risk have to return
+4
Answers (
1
)
Anderson Vazquez
28 June, 14:03
0
See explanation below for answer.
Explanation:
The relationship that exists between risk and return can be generally said to be "the higher the potential return of an investment, the higher the risk involved".
However, there is no guarantee that a higher risk will yield a higher return. This is where diversification comes into play. It enables one to reduce the risk involved in his/her portfolio without actually sacrificing potential returns.
From the above therefore, we can see that, if you want to achieve something big or a huge return on investment, then taking a huge risk might come into play. What this means basically is that If one is not willing to take a risk, then he / she may not get profit as well.
Comment
Complaint
Link
Know the Answer?
Answer
Not Sure About the Answer?
Find an answer to your question 👍
“What relationships does risk have to return ...”
in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Keynesian economists believe: the economy ought to be left to market forces. government policies do not affect economic activity. most government policies would probably make things worse.
Answers (1)
Clean Rinse Shampoo has been the leader of hair-cleaning products for about 40 years. However, this company relied too long on its competency without refining or upgrading its product.
Answers (1)
What steps have u. s. firms taken to regain a competitive edge in the global marketplace? explain?
Answers (1)
You recently purchased a stock that is expected to earn 19 percent in a booming economy, 12 percent in a normal economy, and lose 8 percent in a recessionary economy.
Answers (1)
Which of the following indicates at least two accounts are affected by a transaction? Normal balance Debits Credits Double-entry system
Answers (1)
New Questions in Business
Which profession is most likely to be concerned with the effect of supervisors management styles?
Answers (1)
The primary goals of inventory managers are to maintain a sufficient quantity of inventory to meet customers' needs, ensure inventory quality meets customers' expectations and company standards, and minimize the cost of acquiring and carrying an
Answers (1)
Stacy Hanes is an African-American woman who has recently taken her first job and does not seem to like the work environment at all, Her colleagues put down her ideas at team meetings and refer to them as "stupid.
Answers (1)
The owner of a bicycle repair shop forecasts revenues of $160,000 a year. Variable costs will be $50,000, and rental costs for the shop are $30,000 a year. Depreciation on the repair tools will be $10,000.
Answers (1)
Sagon Corporation has provided data concerning the Corporation's Manufacturing Overhead account for the month of September.
Answers (1)
Home
»
Business
» What relationships does risk have to return
Sign In
Sign Up
Forgot Password?