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Risk and Return

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Please help answer the following questions. Provide at least 200 words in the solution.

What is the relationship between risk and return. Is it always as simple as higher risk means higher return? What factors need to be considered, how can risk be reduced?

Any answer given will be used to help understand the question and will be reworded. OTA will also be given credit for assistance.

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This posting helps with an accounting problem. The solution discusses the relationship between risk and return. The explanation is given in 299 words.

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Problem: What is the relationship between risk and return. Is it always as simple as higher risk means higher return? What factors need to be considered, how can risk be reduced?

Solution:
Higher risk does mean a higher return but that is not guaranteed. Sometimes a higher risk will result in a much lower return or losing all the capital invested and a lower risk will mean more of a return. It all depends on the market and how it is going. If a large amount ...

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