Discuss the risk/return tradeoff and how it relates to finance. - 4139

Solution Posted by
UoPExpert

UoPExpert

Rating : (2)F
Solution Detail
Price: $1.30
  • From: ,
  • Posted on: Tue 27 Mar, 2012
  • Request id: None
  • Purchased: 0 time(s)
  • Average Rating: No rating
Request Description

Discuss the risk/return tradeoff and how it relates to finance. 

 

The Risk-Return Trade-Off states that investors demand a higher return for taking 

on additional risk; This risk-return relationship will be a key concept as we value 

stocks, bonds, and proposed new projects because in Finance we learn that the 

higher the risk, the higher the return investors would require, and the lower the 

price of stocks and bonds.

 
Solution Description

Discuss the risk/return tradeoff and how it relates to finance.