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There is a______ relationship between the risk of becky's portfolio and its average annual return.

1 Answer

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There is a positive relationship between the risk of Becky's portfolio and its average annual return.

In finance, the risk-return tradeoff principle suggests that higher risk is generally associated with higher potential returns, and lower risk is associated with lower potential returns. This means that if Becky wants to earn higher returns from her portfolio, she may need to accept a higher level of risk. Conversely, if she wants to minimize her risk exposure, she may need to settle for lower potential returns. Therefore, the risk and return of Becky's portfolio are positively related.

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answered
User Brook Jordan
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