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Generally speaking, the _______ the risk, the _______ the potential return or loss

Annie Barnes

in Business

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1 answer

Amanda Johnson on June 15, 2018

Generally speaking, risk and rate of return are directly related. According to the risk level of an investment increases, the potential return usually increases as well. The pyramid of investment risk illustrates the risk and return associated with various types of investment options. As investors move up the pyramid, which incur a greater risk of loss of principal along with the potential for higher returns.

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