What is the relationship between risk and return in finance? Why does this relationship hold in the financial markets?

Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter9: The Financial Markets And The Economy: The Tail That Wags The Dog
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What is the relationship between risk and return in finance? Why does this relationship hold in the financial markets?

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