High Risk, High Returns? Not Quite.
For many years, investors have been told that risk and return are correlated. In a broad sense, history seems to bear that out -- the stock market, which fluctuates a lot more than the bond market, has yielded higher long-term returns. In a narrow sense, this principle -- the risk-return tradeoff -- is the basis of almost all academic theories of the value of financial assets. It makes sense, after all -- if something is risky, people generally won't buy it unless it also offers chances for big winnings.
To continue reading this article you must be a Bloomberg Professional Service Subscriber.
If you believe that you may have received this message in error please let us know.
- 'Gaydar' Shows How Creepy Algorithms Can Get
- Trump, Presidential? Steph Curry Knows Better.
- Can We Stop Calling It a 'Muslim Ban' Now?
- The NFL Can't Afford to Become a Battleground
- In NFL Fight, Trump Embraces Political Correctness
- Dial Down the National Anthem at Sporting Events
- More Sanctions, Fewer Insults Against North Korea