echilds4 echilds4

22-11-2019
Social Studies

contestada

How is the potential rate of return on investments related to the level of risk?
A) There are risks and benefits to all investments.
B) Higher risk investments have a higher potential return.
C) The rate of return can depend on fees, tax deferrals, and exemptions.
D) Risky investments have a lower rate of return than more stable investments.

Respuesta :

nalleitenw nalleitenw

22-11-2019

The correct answer is letter B.

Explanation: The return on investment should be commensurate with the risk involved. Risk is a measure of the volatility of future earnings returns.

Volatility is a quantity of fluctuations that occur with a series of numbers when they deviate from a representative series.

Answer Link

skyfox027 skyfox027

13-12-2019

Answer is B ; got it right on USA test prep

Answer Link

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