What is the relationship between risk and return-02376
This subjective question is related to the book/course vu mth718 Topics in Numerical Methods. It can also be found in vu mth718 Mid Term Solved Past Paper No. 9.
Question 1: What is the relationship between risk and return?
Answer:
Risk and potential return need to be analyzed together throughout the investment decision making process. Considering their relationship is a big part of what investment advisers get paid to do.
The Direct Relationship:
The fundamental relationship between risk and return is well known to those who have studied the market.