Risk And Return
Investing in various types of investments isn't without risk. The higher the return of any investment, the greater the risk will be. Risk goes hand in hand with return.
Understand the Risk-Return relationship below (see also diagram below).
1. The higher the return potential, the higher the risk is associated with it.
2. The lower the return, the lower the risk.
3. Different types of investments come with different risk-return relations.
4. Different vehicles of each investments types also come with their own risk-return relations.
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