Q » Explain the concept of risk and return in portfolio management.

John

17 Oct, 2025

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A » In portfolio management, risk refers to the potential for investment losses, while return is the gain or profit generated by the investment. Balancing risk and return is crucial; higher returns often come with increased risk. Effective portfolio management involves diversifying assets to mitigate risk while aiming for optimal returns, aligning with the investor's risk tolerance and financial goals.

Michael

17 Oct, 2025

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A »In portfolio management, risk and return are intertwined concepts. Risk refers to the likelihood of losses or volatility, while return represents the potential gains. Investors seek to balance these elements, as higher returns typically come with increased risk. Effective portfolio management involves optimizing this trade-off to meet individual investor goals and risk tolerance.

Joseph

17 Oct, 2025

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A »In portfolio management, risk refers to the potential for losses, while return is the gain expected from an investment. The risk-return tradeoff suggests higher returns come with higher risk. For example, stocks offer high returns but can be volatile, whereas bonds provide lower returns with stability. Balancing these elements helps investors achieve their financial goals within their risk tolerance.

James

17 Oct, 2025

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A »In portfolio management, risk and return are intertwined concepts. Risk refers to the likelihood of losses or volatility, while return is the potential gain. Investors seek to balance risk and return by diversifying their portfolios, as higher-risk investments often offer higher potential returns, and vice versa, to achieve their financial goals.

David

17 Oct, 2025

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