What are the trade-offs that investors consider when making investments? Explain what each of these aspects mean. Give one example of these trade-offs. in 4 sentences
One trade-off that investors consider is the potential return on investment versus the level of risk involved. This means weighing the possibility of high profits against the possibility of losing money. Another trade-off is liquidity, which refers to how quickly an investment can be bought or sold. An example of a trade-off could be investing in a high-risk, high-return stock versus a low-risk, low-return bond.
