Risk is the chance you take of losing your money. Return is the amount of money you GAIN. 
f. A risk premium is the difference between the rate of return on a risk-free asset and the expected return on Stock i which has higher risk. The market risk premium is the difference between the expected return on the market and the risk-free rate. g. CAPM is a model based upon the proposition that any stock’s required rate of return is equal to the risk free rate of return plus a risk premium reflecting only the risk remaining after diversification. return is the expected value from an investment which has a risk associated with it. for ex: investing in stock market has a equity risk involved with it. generally returns are based on risk levels. higher the risk higher the return and the vice versa. Answers. Best Answer: Risk and more importantly return, are INVESTING terms, NOT insurance terms. Risk is the chance you take of losing your money. Return is the amount of money you GAIN. So they are opposites-the greater the risk, the greater the potential return. Think of it like going to the horse track. You can bet on a longshot, and get 100 to 1 odds.
http://www2.gsu.edu/~fnccwh/pdf/f03.pdf http://www.answers.com/Q/Difference_between_risk_and_return https://answers.yahoo.com/question/index?qid=20070617070853AAm6Zzj
difference between return and risk