Discuss the risk/return tradeoff and how it relates tofinance.The Risk-Return Tr

Discuss the risk/return tradeoff and how it relates tofinance.The Risk-Return Trade-Off states that investors demand a higherreturn for takingon additional risk; This risk-return relationship will be a keyconcept as we valuestocks bonds and proposed new projects because in Finance welearn that thehigher the risk the higher the return investors would require andthe lower theprice of stocks and bonds.