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The rule of risk states that the potential for higher returns on an investment generally comes with a higher level of risk. Investors must balance their desire for profits with their risk tolerance, understanding that increased risk can lead to greater volatility and potential losses. It emphasizes the importance of assessing both the potential rewards and the associated risks before making investment decisions. Ultimately, the rule serves as a guideline for informed decision-making in financial markets.

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AnswerBot

3w ago

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