what is the relationship between risk and return?\n\na higher risk often means a higher return.\na lower…

what is the relationship between risk and return?\n\na higher risk often means a higher return.\na lower risk always means a higher return.\na higher risk often means a lower return.\na lower risk will always mean a lower return.

what is the relationship between risk and return?\n\na higher risk often means a higher return.\na lower risk always means a higher return.\na higher risk often means a lower return.\na lower risk will always mean a lower return.

Answer

Brief Explanations:

The risk-return tradeoff is a fundamental concept in finance stating that the potential return on an investment rises with an increase in risk. To incentivize investors to take on higher uncertainty or the possibility of loss, a higher potential reward (return) must be offered. Conversely, low-risk investments typically offer lower potential returns. The word "often" is used because higher risk does not guarantee a higher return, but rather the possibility of one.

Answer:

A higher risk often means a higher return.