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The risk generally differs on the basis of where it is defined. In simple words, it is the prospect, that the actual return on an investment will be lesser as compare to the expected return. While the profit or loss of a security in a specific time-period is known as the return. The return includes the income and capital gains.

The Risk and Return continuum is as well termed as the risk-return trade-off and is the most significant concept in Accounting and Finance. The connection between the sum of return acquired on an investment and the amount of risk taken on the equivalent is basically signified by the term risk-return. It is employed by the investors to assess whether the question raised due to investment is worthy or not. In this continuum, the  return is directly proportional to the risk taken. The maximum return is generally anticipated for high risk venture and vice-versa.

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Risk-return related topics:

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