Which of the following is a true statement?

Responses

Risk and the likelihood of realizing future cash flows from an investment are unrelated.

Risk and the likelihood of realizing future cash flows from an investment are unrelated.

There is a direct relationship between risk and expected return.

There is a direct relationship between risk and expected return.

Riskless investments do not usually earn a positive return.

Riskless investments do not usually earn a positive return.

Although economists understand the relationship between risk and return, they have been unable to develop a way to quantify it$.$