Respuesta :
The risk-return tradeoff states the higher the risk, the greater the reward—and vice versa. Using this principle, low levels of uncertainty (risk) are associated with low workable returns and excessive stages of uncertainty with excessive practicable returns.
Is there a direct relationship between risk and return?
Efficient market principle holds that there is a direct relationship between chance and return: the greater the chance associated with an investment, the greater the return.
How is historical risk and anticipated return is measured?
Investors study historical return data when attempting to forecast future returns or to estimate how a safety might react in a situation. Calculating the historical return is completed via subtracting the most latest fee from the oldest price and divide the end result by the oldest price.
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