How trade-off between risk and return manifests in an investment decision?
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Explanation:
Higher risk is associated with greater probability of higher return and lower risk with a greater probability of smaller return. This trade off which an investor faces between risk and return while considering investment decisions is called the risk return trade off.
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Trade-off between risk and return manifests in an investment decision
Explanation:
- Investment is a very much needed for every business entity. These are both dependent on the short and long term plans.
- If once wisely has developed a business plan for their organisation , the trade off between risk and return manifests.
- The decision of risk only needed when the organisation has sufficient working captial to back it up.
- If organization is looking for a risk backing up with existing sufficient return ,then there comes the decision making.
- The board should look in the shoes of the investors and take the decision of risk or return.
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How trade-off between risk and return manifests in an investment decision?
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