What Is the General Relationship Between Risk and Return

question 12

Multiple Choice

What is the general relationship between risk and return?

• A) These two factors are not related.
• B) As risk increases, returns should decrease.
• C) As risk increases, returns should increase.
• D) As returns increase, the risk should decrease.

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Definitions:

Supply

The total amount of a specific good or service that is available to consumers.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a particular price over a given period of time.

Equilibrium Price

is the market price at which the quantity of goods supplied is equal to the quantity of goods demanded.

Technology

The application of scientific knowledge for practical purposes, especially in industry, which drives innovation, efficiency, and productivity improvements.