More financial risk equals higher returns? Not quite
from Bloomberg via Chicago Tribune
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.
7701 Las Colinas Blvd., Ste. 800, Irving, TX 75063