Ch.10 · Benchmarks and Performance Evaluation · easy
What is the risk-return trade-off principle in investing?
0% of students got this wrong
EXPLANATION
The risk-return trade-off is a fundamental investment principle: higher potential returns require accepting higher risk. Overnight funds offer low risk and low returns; equity funds offer high potential returns with high risk. Investors must choose their position on this spectrum based on their risk tolerance and investment horizon.
Practising Chapter 10 one question at a time?
Try the full chapter — 100 questions, tracked score, weak area breakdown.