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 (a sub - field of Business), the general principle is that there is a positive correlation between risk and return. However, it is not an absolute "always" relationship. Higher - risk investments have the potential for higher returns, but there are no guarantees. Lower - risk investments typically have lower potential returns, but again, it's not an absolute "always".

Answer:

A. A higher risk often means a higher return.