Investment strategies are all based on balancing what two concepts? W

QUESTION

Investment strategies are all based on balancing what two concepts?

What will be an ideal response?

ANSWER

Answer: Every investment strategy seeks to successfully balance the potential risks of particular investments against the possible returns that can be gained from the investment.
Explanation: Investing is all about risks and returns. An aggressive mutual fund may present high risk but high returns. A money market fund is low risk but offers low returns. People weigh how much risk they are willing to assume to obtain desired returns.