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higher the risk for an investment
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How is the potential rate of return on investments related to the level of risk?
Higher risk investments have a higher potential return.
High return on an investment is associated with?
higher risk. The higher the potential return, the higher the potential risk because there is a greater chance of losing money. High returns often come from investments with higher volatility and uncertainty, such as stocks or speculative assets, which carry greater risks compared to more conservative investments like bonds or savings accounts.
What does the risk-return trade-off mean?
In trading and investing, the risk is almost always higher if the return is expected to be greater.The risk-return trade off refers to the direct correlation between risk and return. An investor putting funds into a very low risk investment such as short term government bonds does not expect to incur a loss but will also have no opportunity for a high rate of return. Investing in higher risk ventures such as start up companies, initial public offerings, or common stock can result in significant loss but also offers the potential for out sized returns. Most investors understand that the higher the risk, the higher the potential returns.
Basic concept of risk and return?
The higher the risk, the higher the return.
When an electrical charge moves from a higher potential energy to a lower potential energy does what?
when an electric charger moves from higher to lower potential energy, it supplies energy to us but when it is moved from lower to higher potential, we have to supply energy to it........... because every thing has a tendency to move from a point of higher potential to lower potential........
How do financial decision involve risk return trade off?
The principle that potential return rises with an increase in risk. Low levels of uncertainty (low risk) are associated with low potential returns, whereas high levels of uncertainty (high risk) are associated with high potential returns. According to the risk-return tradeoff, invested money can render higher profits only if it is subject to the possibility of being lost.-- Raju R akki
Why the current flow from higher potential to lower potential?
Current defined as Positive charge flow , flows from higher potential to the lower. Current defined as electron flow, flows from lower potential to higher. In general Potential and Current are defined by positive charge.
What is water potential gradient?
similar to potential energy, water flows down a gradient from higher potential to lower potential. Higher potential is generally in the soil/roots and lower potential is at the leaves/atmosphere. The water has potential to flow down the gradient
What determines the direction of Electric?
The potential difference. The electrons flows from a lower potential to a higher potential. The electric current flows in the opposite direction. The electric field's direction is always from a higher potential to a lower potential. Its kind of like a waterfall. The water always falls down not up. It goes from a higher potential to a lower potential.
What has the most potential energy higher or lower?
Higher
How do you get a higher rate of return?
Just as getting more money produces a higher rate of return, getting the money sooner also produces a higher rate of return.
What is the earning potential on your savings?
Rate of return
