Carefully describe the risk-return tradeoff faced by all investors with the help of a ddiagra.
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Atomic number, the number of a chemical element in the periodic system, whereby the elements are arranged in order of increasing number of protons in the nucleus. Accordingly, the number of protons, which is always equal to the number of electrons in the neutral atom, is also the atomic number
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Risk-Return Tradeoff
By
JAMES CHEN
Reviewed by
GORDON SCOTT Updated Feb 3, 2020
What is Risk-Return Tradeoff?
The risk-return tradeoff states that the potential return rises with an increase in risk. Using this principle, individuals associate low levels of uncertainty with low potential returns, and high levels of uncertainty or risk with high potential returns. According to the risk-return tradeoff, invested money can render higher profits only if the investor will accept a higher possibility of losses.
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