Definitions for "Risk/return trade-off"
The relation between risk and return that usually holds, in which one must be willing to accept greater risk if one wants to pursue greater returns. also called risk/reward trade-off.
Concept that risk equals (varies with) return. The higher the return is the greater the risk and vice versa.
The balance an investor must decide on between the desire for low risk and high returns, since low levels of uncertainty (low risk) are associated with low potential returns and high levels of uncertainty (high risk) are associated with high potential returns.
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