select the correct answer. which statement is true? a. as the risk of an investment decreases, the…

select the correct answer. which statement is true? a. as the risk of an investment decreases, the opportunity of gains increases. b. as the risk of an investment decreases, so does the potential for its return. c. as the risk of an investment increases, its market value increases. d. as the risk of an investment increases, the opportunity of gains decreases. e. as the risk of an investment increases, its market value decreases.

select the correct answer. which statement is true? a. as the risk of an investment decreases, the opportunity of gains increases. b. as the risk of an investment decreases, so does the potential for its return. c. as the risk of an investment increases, its market value increases. d. as the risk of an investment increases, the opportunity of gains decreases. e. as the risk of an investment increases, its market value decreases.

Answer

Brief Explanations:

In finance, there is a general relationship between risk and return. Lower - risk investments typically offer lower potential returns, while higher - risk investments have the potential for higher returns but also higher losses. When the risk of an investment decreases, the potential for high returns also decreases because there is less uncertainty and potential for large gains.

Answer:

B. As the risk of an investment decreases, so does the potential for its return.