What is Risk-Return Tradeoff?
The risk-return tradeoff is the basic idea that, in general, chasing higher potential returns means accepting higher risk. Safer assets tend to grow slowly and steadily, while assets that can grow quickly can also drop sharply. There is no setting that offers high returns with no risk, so every choice is really a balance between the two.
Why Risk-Return Tradeoff matters
It frames every investing decision as a balance, not a search for free upside.
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