Answer:
b. Investments with low risk have lower returns.
Explanation:
If you're eyeing the market and looking for applications with above-average returns, it's good to stay tuned for a fundamental point: risk and return!
That's right: the relationship between risk and return is direct. In other words, it is impossible to make a lot of money in the stock market at low risk! So the obvious conclusion could be: to earn more, just increase the risk. So in the perfect world, you would choose the desired risk and receive the expected return.
First, you have to keep in mind that in order to attract investments, higher risk assets need to offer the possibility of higher returns. Then, it is essential to know that the stock market does not have a ready solution for the risk / return ratio, since it presents a number of variables as fundamentals and flows. In this way, there is no guarantee of earnings. To know the risk of a particular action, it is essential to know your risk and return history. Thus, you can evaluate the performance of the investment.
The relationship between return and risk in investments often follows the principle of risk-return tradeoff, meaning higher potential returns typically come with higher risk. Investors with low risk tolerance are likely to choose lower-return investments, while those with higher risk tolerance may pursue investments with the potential for higher returns.
In the world of investing, the correlation between return and risk typically follows one principle: the higher the potential return, the higher the risk. This relationship is often referred to as the risk-return tradeoff. This means the option b, 'Investments with low risk have lower returns' is correct, as investors who are risk-averse might choose investments with lower returns due to the associated lower level of risk.
On the other hand, investors willing to take on more risk often pursue investments with the potential for higher returns. However, it’s important to note that a higher potential return doesn’t guarantee an actual higher return. Therefore, always be sure to consider your own risk tolerance before making investment decisions.
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Answer:
Before it entered World War I, the United States had declared itself to be
a neutral country.
Explanation:
I just took the quiz on edg. , I hope this helps! :)
Answer:
the tenth amendment - protection for the rights of states
Explanation:
Answer:
Ethnicity
Explanation:
An ethnic group or ethnicity is a grouping of people who identify with each other on the basis of shared attributes that distinguish them from other groups.