Risk vs. Return

Risk versus return describes the balance between the potential reward of an investment and the possibility of losing money. Generally, higher returns come with higher risks, meaning there's a greater chance of financial loss. Lower-risk investments tend to offer more stable but smaller gains. Investors must evaluate their comfort with risk and their financial goals, understanding that aiming for higher returns may involve more volatility and uncertainty. Making informed choices involves weighing the potential rewards against the likelihood and impact of possible losses.