Answer:
The level of risk varies directly with investment return
Explanation:
Investment instruments include: savings Accounts, Certificates of Deposit, Money Market Deposit Accounts, Stocks, Bonds, Mutual Funds. ...
Annuities.
The higher the risk for any of this investment instruments, the higher their return, measured by the cost of capital.
Cost of capital is the minimum sum of money that investors are willing to get from their investment in any investment instrument or with any firm. It can also be defined to be the opportunity cost of not investing in other instruments or companies.
