Asked by Nathan Tsung on Jul 19, 2024
Verified
Define risk and return and discuss the relation between them.
Risk and Return
A financial concept indicating that the potential return on any investment is directly correlated with the level of risk taken.
- Apprehend the intention, organization, and impact of the balance sheet on financial communication.
Verified Answer
ZH
Zainab HusainJul 19, 2024
Final Answer :
Net income is often related to return,which is what is earned from investments.Risk is the uncertainty about the return that will be earned.All investments involve risk,but risk and return vary among investment opportunities.In general,the lower the risk of an investment; the lower the expected return.Higher return is expected in exchange for accepting higher risk.
Learning Objectives
- Apprehend the intention, organization, and impact of the balance sheet on financial communication.