CISI Introduction to Investment Practice Test
CISI IoI Investment Risk and Return
What is the 'risk-return trade-off' in investing?
Select your answer
A
Higher-risk investments always produce higher returns than lower-risk investments
B
Investors generally expect higher potential returns from higher-risk investments to compensate for the greater uncertainty of outcome
C
Lower-risk investments provide no return at all
D
All investments carry identical risk when held for more than 10 years
Hint