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Return and investment?

How do you describe the relationship between the risk and return of an investment?

Investors are usually risk averse, which means that they accept to make a risky investment only if it offers them a higher return prospect than a riskless one. This extra expected return is called the "risk premium".

The higher the risk of an investment the higher the expected return.

Hi, i recommand you a good and basic tutorial for investing. it covers all Issues related to your Investing and everything around it.

http://www.investingtutorial.info/

wish it will help you.

Good Luck , Best Wishes!

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