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Risk-Return tradeoff

The Risk-Return tradeoff

...is the principle that potential return rises with an increase in risk. Low levels of uncertainty or risk are associated with low potential returns, whereas high levels of uncertainty or risk are associated with high potential returns.

 

Investing is about managing risk (NOT avoiding it)

 

According to the risk-return tradeoff, invested money can render higher profits only if the investor is willing to accept the possibility of losses.

Read more: Risk-Return Tradeoff Definition | Investopedia
www.investopedia.com/terms/r/riskreturntradeoff

2017-02-02 22:18:59