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    Investors sometimes fear that a high-risk investment is especially likely to have low returns. Is this fear true? Does a high risk mean the return must be low?

    When people believe that a high-risk investment must have a low return, they are getting confused between what risk and return mean. Yes, a high-risk investment might have a low return, but it might also have a high return. Risk refers to the fact that a wide range of outcomes is possible. However, a high-risk investment must, on average, expect a relatively high return or else no one would be willing to take the risk. Thus, it is quite possible—even likely—for an investment to have high risk and high return. Indeed, the reason that an investment has a high expected return is that it also has a high risk.

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Questions & Answers

Leo Robinson's definition
Adejimi Reply
how is equilibrium defined in financial markets?
Babakura Reply
the concept of it
Country A has export sales 20 billion, government purchases 1000billion, business investment is 50 billion, imports are 40billion, and consumption spending is 2000billin. What is the dollar value of GDP ?
Habtamu Reply
what is determination of national income?
Waqar Reply
economic growth
stock of capital
we're RBI keep money with them
Y =C+l
evaluate the success affirmative action as one of south Africa's redress method
Tebatso Reply
what is market equilibrium
explorer Reply
it is a situation in which the supply of an item is exactly equal to it dd .
inder wat condition shld a firm stop production in both short n lungrun ?
what is 2nd degree price discrimination?
what is quantity
what is quantity2
Deji Reply
An indefinite amount of something.
what is demand
Kaman Reply
in ordinary sense demand means desire
demand in economics means both willingness as well as the ability to purchase a commodity by paying a price an also its actuall purchase
what is absolute advantage
demand refers to the various quantity of goods and services that consumers are willing and able to purchase at a particular period of time all other things been equal
The amount of a good or service that consumers are willing to buy at a particular price.
what is cost pull inflation?
what is utility
what is cost pull inflation?
demand is economic principle referring to a consumer's desire and willingness to pay a price for a specific or service..
utility is the among of certisfaction driving from using a comundity
pull cost of inflation hight population unemployment to some of The country members poor government system
what is a buffer scheme
state the second law of demand and supply
Ahmadou Reply
state the law of diminishing marginal utility
dt know WATS the answer
mention and explain two Bank I financial institutions and two non baking financial institutions
Onah Reply
wat is demand pull inflation
Tony Reply
Demand-pull inflation is asserted to arise when aggregate demandin an economy outpaces aggregate supply. It involvesinflation rising as real gross domestic product rises and unemployment falls, as the economy moves along the Phillips curve.
Perfectly elastic demand
Abubakar Reply
this is a form of demand where goods are demanded at a constant price
what inelastic demanding
demand of any good demanded more after a certain period. if a commodity prices may high and scarcity of that resources.
cannot demand more
what is cross-elasticity of demand
Miles Reply
cross elasticity of demand is an economic concept that measures the responsiveness in the quantity demand of one good when a change in price takes place in other good
this is responsiveness quantity demanded keeping other factors constant
what economic growth
Rukundo Reply
conditions of perfect market
NdzAlama Reply
CONDITIONS OF PERFECT MARKET: 1. Perfect competition(PC): no increasing returns, many buyers and sellers, all are price takers, not prices makers. 2. Perfect Information (PI): buyers and sellers know all they need to know about what they are buying and selling to make the right decisions.
3. Complete Markets(CM): no externalities or public goods, no transactions costs, "thick" markets.
nice contributor
A numerous downsized market that does not meet standards.
A Perfect Market is a numerous downsized market that does not meet standards.
what is a market
is place where buyers and sellers met together for the purpose of buying and selling of good and services

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