Question: Discuss the relationship between risk and return. Argue about what type of risk preference could add the most value possible to an investment. When exposing

Discuss the relationship between risk and return. Argue about what type of risk preference could add the most value possible to an investment.

When exposing your answer, you should:

Define the concepts of risk and return.

Describe and analyze the three types of risk preferences and their impact on return on investment.

Indicate how the financial manager measures risk and return.

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