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Explain why in the long run the rate of return on investments reflects the riskiness of...

Explain why in the long run the rate of return on investments reflects the riskiness of those investment?


answer must have a word length of at least 300 words long!! do not plagiarize!!! answer must be correct! follow directions!!
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Answer #1

The long run rate of return on investments reflects of those investment have following reasons.

- It totally depnds upon the market risks and the behavioral and also the next reason is stability in the market for long and to maintain standard for such a long period is also challenging.

- It is not necessary that other things always remain constant some of the natural calamities or disasters can reverse the economy.

- Global investments depends upon the strategic relationship and trade policies thus it also plays an important role.

This were some reasons for the riskiness of long term rate of return.

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