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Risk and Return in Financial Markets

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Analyze and explain the relationship between risk and return in financial markets. As an investor what would some of your expectations be with regard to a high risk investment and low risk investment?

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Solution Summary

This solution of 222 words discusses the expectations of an investor and analyzes the relationship between risk and return in financial markets with examples.

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Hi there,

As an investor, my expectations regarding high versus low risk investments would be the following: If I had a low tolerance for risk, I would choose to invest in items like government backed bonds and guaranteed investment certificates. By doing so, my expectation that I would earn a very low rate of return. The reason ...

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