What relationships does risk have to return

See explanation below for answer.

Explanation:

The relationship that exists between risk and return can be generally said to be "the higher the potential return of an investment, the higher the risk involved".

However, there is no guarantee that a higher risk will yield a higher return. This is where diversification comes into play. It enables one to reduce the risk involved in his/her portfolio without actually sacrificing potential returns.

From the above therefore, we can see that, if you want to achieve something big or a huge return on investment, then taking a huge risk might come into play. What this means basically is that If one is not willing to take a risk, then he / she may not get profit as well.