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    Investors sometimes fear that a high-risk investment is especially likely to have low returns. Is this fear true? Does a high risk mean the return must be low?

    When people believe that a high-risk investment must have a low return, they are getting confused between what risk and return mean. Yes, a high-risk investment might have a low return, but it might also have a high return. Risk refers to the fact that a wide range of outcomes is possible. However, a high-risk investment must, on average, expect a relatively high return or else no one would be willing to take the risk. Thus, it is quite possible—even likely—for an investment to have high risk and high return. Indeed, the reason that an investment has a high expected return is that it also has a high risk.

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Questions & Answers

How does market failure arise from the characteristics of public goods
Linda Reply
can i be the part of discussion
Zahoor
feel free
Michel
us. finite is the meaning amount of resources avaible . of the. only. good. finite amount of there I only point the is I want you to be on my side
Samantha Reply
there are how many types of demand?
Young Reply
dicejd sacracrity what that mean
Samantha Reply
vacation laughing meditiin joke I made if pasted I was going on vaction
Samantha
1- how to determine the optimal level of output and price in the short run? 2-how to calculate the economic profit (loss) the firm will obtain(incure)in monopolistic competition faces short run demand and cost functions as Qd=20-0.5P and TC=4Q -8Q+15
Kalid Reply
its hair care firm but tinted it doesn't natraully grow in the two week spand so you put cap on top and or weave so it grow natural to cover a patch
Samantha
what is asset ?
Rather Reply
something u own or valuable
Michel
In Accounting, asset is anything that is owned by the business.
James
economic item used for father more production
Dicklearz
give the dimand equation QD=24-2p find the inverse dimand equation
Kadir
it huge score its of hair care hydge
Samantha
invest ment on one self
Samantha
proudtion is product of personal apprences quality is guilty I go to the shop
Samantha
sometimes I go to the shop my hair solono lady past
Samantha
so I have quipt my self to handle thing of higher in quality my self
Samantha
when there in avabilty
Samantha
Or in avible
Samantha
what asset my apprences is improvement is my its my priduct
Samantha
product
Samantha
falls under self growth and worth
Samantha
what is Asset your market value of your top roman
Samantha
Discuss the following questions in detail. 1, Suppose a firm operating under a perfectly competitve market structure is in its equilibrium. Does mean the firm is making excess profit?if no, show the possibilities regarding the amount of profit under equilibrium position. 2, Discuss the distinction b
Sura Reply
in long run a perfectly competitive firm is making only normal profits ,
Rather
Can I be part of this discussion?
James
of course
Rather
what is microeconomics
Jnana Reply
Workout. Show the steps clearly. 1, Suppose a firm in a perfectly competitive market structure has the following total cost function, ( TC=6000+4Q-24Q the power 2 + 4Q the power 3 ) if market ptice is 40, find A, Equilibrium level of output produced by the firm in order to maximize its profit. B,
Sura Reply
Discuss the following questions in detail. 1, Suppose a firm operating under a perfectly competitve market structure is in its equilibrium. Does mean the firm is making excess profit?if no, show the possibilities regarding the amount of profit under equilibrium position. 2, Discuss the distinction b
Sura
given the dimand equation QD=24-2p find the inverse dimand equation ?
Kadir Reply
you m.i.l subject
Raj
you know m.i.l subject
Raj
giveTc 10=+6Q-0 ,9Q2+0.05Q3 then calculated the following Tvc Avc ATC MC and AFC
Kadir
answer
Kadir
shift in demand curve
Adeoye Reply
Hi Adeoye
Oluyemi
nice to meet with you
Tanbir
hello...
Ajay
hi
Arslan
Hello bhadwooo
dipanshu
why in monopolistic competition the demand curve shifts to the left
Wani Reply
Because the players are few and due to the fact that their products are differentiated, they have market influence on either price to be charged or quantity to be offered to the market
Diyaolu
given Tc=10 +6Q-0,9Q2+0,05Q3 what is Tvc ? ATc ? mc?
Kadir Reply
Tvc=6q-0.9q2+0.05q3
Diyaolu
Atc=10/q-0.9q+0.05q2
Diyaolu
Mc=6-1.8q+0.15q2
Diyaolu
Avc of produs 2units of output and mc of producing 6units of output and AFC
Kadir
1- how to determine the optimal level of output and price in the short run? 2-how to calculate the economic profit (loss) the firm will obtain(incu...
Kalid
why demand curve shifts to left in long run
Wani Reply
because in long run when the demand of product is more so price will be more and due to increase in price of quantity demanded will be less and demand curve will shift left gradually
Iqra
Shift in demand curve is caused by a number of factors like taste, fashion, population amongst others and depending on whether the factors are positive or negative, that would determine the shift of the demand curve whether left or right and not whether short run or long run
Diyaolu
what is focus of microeconomics
Ebisa Reply

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Source:  OpenStax, Microeconomics. OpenStax CNX. Aug 03, 2014 Download for free at http://legacy.cnx.org/content/col11627/1.10
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