General Studies · Risk and Return Analysis
Which of the following statements correctly explain the relationship between risk and return? A) Higher risk is always associated with higher expected return B) Diversification can reduce unsystematic risk C) Systematic risk cannot be eliminated through diversification D) Risk-free assets have zero variance in returns
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1B, C and D only✓
- 2A, B and C only
- 3B and D only
- 4A and D only
Correct answer
B, C and D only
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