select the correct answer. which statement describes the relationship between risk and return? a. higher…

select the correct answer. which statement describes the relationship between risk and return? a. higher risk often leads to lower potential returns. b. higher risk often leads to higher potential returns. c. lower risk often leads to higher potential returns. d. moderate risk often leads to the highest potential returns.

select the correct answer. which statement describes the relationship between risk and return? a. higher risk often leads to lower potential returns. b. higher risk often leads to higher potential returns. c. lower risk often leads to higher potential returns. d. moderate risk often leads to the highest potential returns.

Answer

Brief Explanations:

In finance, there is a positive - correlation principle. Investors expect to be compensated for taking on higher risk, so higher risk is associated with higher potential returns.

Answer:

B. Higher risk often leads to higher potential returns.