Which of the following statement is true? a. All investment should provide good return: the risk involved need not be assessed. b. When the risk is high, the returns are always low. c. All investment requires a trade-off between risk and return. d. Risk and return are not at all related, investments is only about return and not risk.
Correct Option: Option C i.e. All investment requires a trade-off between risk and return
Why other options are not correct:
Definately you have heard a common phrase “Higher the risk, higher would be the return” and vice versa.
Option B and D are contradictory to above statement hence they are incorrect.
In option A, it is said, risk need NOT to be assesed, which is wrong. A rational investor always assess risk before investing.
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