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Discuss the Relation Between Risk and Return

question 51

Essay

Discuss the relation between risk and return.


Definitions:

Intersect

The point at which two or more lines or paths cross or meet.

Indifference Curve

A graphical representation in economics indicating different combinations of two goods that provide the consumer with equal levels of satisfaction.

Rational Consumer

An individual who makes choices that result in the highest level of personal utility or satisfaction.

Indifference Curve

A graphical representation showing different combinations of goods or services among which a consumer is indifferent, meaning they have no preference for one combination over another.

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