Multiple choice

Directions: State whether the following statement is True Or False.

There is a direct relationship between risk and return.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

In finance, there is a fundamental trade-off where higher potential returns are associated with higher levels of risk. Investors require a risk premium to compensate for taking on greater uncertainty.

Keep practicing — related questions