What is risk/return relationship? Ray Dalio & Quantum Wealth

#Wealth #Money #Investment #RayDalio Ray Dalio American investor Raymond Thomas Dalio is an American billionaire investor and hedge fund manager, who has served as co-chief investment officer of the world’s largest hedge fund, Bridgewater Associates, since 1985. He founded Bridgewater in 1971 in New York. Generally, the higher the potential return of an investment, the higher the risk. There is no guarantee that you will actually get a higher return by accepting more risk. Diversification enables you to reduce the risk of your portfolio without sacrificing potential returns. What is the concept of risk and return? A person making an investment expects to get some returns from the investment in the future. However, as future is uncertain, the future expected returns too are uncertain. Risk is the variability in the expected return from a project. ... In other words, it is the degree of deviation from expected return.