General Studies · Financial Management
Which of the following statements is incorrect regarding risk and return in financial management?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Return is defined as a gain or loss expected over a given period of time by decision makers.
- 2Risk is defined as the variability in returns from investments.
- 3Trading off between risk and return is not a responsibility of a financial manager.✓
- 4Higher risk entails higher potential gain and lower risk entails low potential gain.
Correct answer
Trading off between risk and return is not a responsibility of a financial manager.
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