Question

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

Explanation:

In finance, there is a positive - correlation between risk and return. Investors expect to be compensated for taking on higher risk with the potential for higher returns. Lower - risk investments typically offer lower returns as they are more stable.

Answer:

A. A higher risk often means a higher return.