Etini
Valued Contributor
When it comes to investments, risks and returns are inevitable. Risks is what you stand to lose if the investment goes bad and returns is what you stand to gain if the investment turns out well. What is then the relationship between risks and returns?
There is a positive relationship between risks and returns. That is to say the higher the risks involved in an investment, the higher the potential returns on that investment. Have you ever wondered why cryptocurrency is such a profitable investment? It is because in one swoop, you can lose everything. That's a high risk investment. But when it clicks for you, you would reap in quantums.
That's why you must always check the risks to have a knowledge of the returns on any investment.
There is a positive relationship between risks and returns. That is to say the higher the risks involved in an investment, the higher the potential returns on that investment. Have you ever wondered why cryptocurrency is such a profitable investment? It is because in one swoop, you can lose everything. That's a high risk investment. But when it clicks for you, you would reap in quantums.
That's why you must always check the risks to have a knowledge of the returns on any investment.
