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Lesson 26

Weighing risk and return

No return without risk

Investments with a higher expected return usually swing more, safer ones usually earn less. This relationship is called the trade-off between risk and return.

How much swing fits?

How much swing someone can bear depends on the time frame, income and their own nerves. Anyone who needs the money soon can sit out losses less easily.

Test yourself: you answer the quiz questions for this lesson in the app under Learning.