Relationship between Risk and Return on Investment (ROI)

Return on Investment (ROI)
Student’s Name
Institutional Affiliation
Return on Investment (ROI)
What is the relationship between risk and return on investment (ROI)? What level of risk are you currently able to accept? What are the factors your decision is based on?
The relationship between risk and Return on Investment (ROI) is mutual. According to research, the concept of return provides investors with an ideal way of expressing the financial performance of their investments (Brigham & Ehrhardt, 2016). Conversely, the risk concept occurs when an individual receives an unfavorable outcome for investment in financial assets or new projects than they expected. Economists consider bonds as safe and secure investments because they do not have an exceedingly high or low. Besides, bonds have a low return in investment, whic...