alleryThe principle that a higher risk should bring the chance of a greater return is the:
ARisk-reserve trade-off
BRisk-revenue trade-off
CRisk-refund trade-off
DRisk-return trade-off
Answer & Solution
Correct answer: D. Risk-return trade-off
1. Risk is the potential for loss.
2. Return is the opportunity for profit.
3. It is the risk-return trade-off.
_Source: OpenStax Introduction to Business, Chapter 16, Understanding Financial Management and Securities Markets._
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