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Commerce · Q255

Financial Management

Graduate and Post Graduate · Commerce · question 255

Q255

Underlying all investments is the trade-off between_________.

A.
expected return and actual return
B.
low risk and high risk
C.
actual return and high risk
D.
expected return and risk
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Underlying all investments is the trade-off between expected return and risk. Risk simply means that the future actual return may vary from the expected return.