Discuss the relationship between financial decision making and risk and return. Would all financial managers view risk return trade offs similarly.

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Relationship between functional decision making and risk and return

The higher amount of risk an investment is the higher rate of return will be expected.

The lower amount of risk the lower amount of return will be expected.

For example a savings account has very little amount of risk and has a very low rate of return, while stock market is more risky and you will want a higher rate of return.