Explain how a conservative approach to financing a firms assets is a low risk low expected return strategy whereas an aggressive approach to financing is a high risk high expected return strategy ...

From the typically upwardsloping yield curve we know that generally shortterm securities have lower ...

Explain how a conservative approach to financing a firms assets is a low risk/low expected return strategy

Question:

Explain how a conservative approach to financing a firm’s assets is a low risk/low strategy whereas an aggressive approach to financing is a high risk/high strategy.
Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...