Question: The relationship between risk and return is positive because A . the longer the term of the investment, the more exposed it is to negative

The relationship between risk and return is positive because
A. the longer the term of the investment, the more exposed it is to negative inflation effects.
B. investors need to be compensated with additional return on investment to bear additional risk.
C. not every investment has risk, so there is really no distinct relationship.
D. Both A and B are correct:
 The relationship between risk and return is positive because A. the

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!