Please give me an example

Principle 4: Additional risk is not taken without the expected additional return. For delaying consumption, investors demand a minimum return that must be greater than the anticipated rate of inflation or any perceived risk (Figure 1.6). If they didn't receive enough to compensate for anticipated inflation and the perceived investment risk, investors would purchase whatever goods they desired ahead of time or invest in assets that would provide a sufficient return to compensate for any loss from inflation or potential risk. The preceding four principles are as much statements of common sense as they are theoretical precepts. These principles provide the logic behind what is to follow. We build on them and attempt to draw out their implica- tions for decision-making. As we continue, keep in mind that, while the topics being treated may change from chapter to chapter, the logic driving our treatment of them is constant and rooted in the four fundamental principles. Expected returns from bonds and stocks are normally higher than the expected return from a savings account Investment Potential Expected Class Risk Return Savings account Low/None 1.5% (cash) Bond (debt) Moderate 4.8% Stock (equity) High 11.5% Figure 1.6 Risk and return trade off