Select the correct answer.
Which statement describes the relationship between risk and return?
OA. Higher risk often leads to lower potential returns.
O B.
O C.
O D.
Higher risk often leads to higher potential returns.
Lower risk often leads to higher potential returns.
Moderate risk often leads to the highest potential returns.

The relationship between risk and return in investing is explored, highlighting how higher risk can lead to higher potential returns while lower risk investments may yield lower but more stable returns over time.

Explanation:

Risk and return have a complex relationship in investing. Higher risk often leads to the potential for higher returns, as investors demand more reward for taking on greater risk. On the other hand, lower risk investments tend to offer more stable but lower returns over time.

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