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What is the relationship between risk and return?

April 26, 2017relationship Return risk

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What is the relationship between risk and return?

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The higher the investment risk the higher the return on average. The lower the investment risk, the lower the return on average. Over a long term investment in stocks, (higher risk) produces higher returns than investment in bond (lover risk than stocks). Investment in bonds (higher risk than money market) an average provides higher returns than money market (lower risk than bonds).