Risk & Return
There is absolutely a relationship between risk and rate of return.
If you're not willing to take on any risk with your investments, or if you're not willing to put up with any volatility you can't reasonably expect to make any significant rate of return on your investments. That's just the way it is.
But if you're willing to put up with a bit of risk and a bit more volatility in your portfolio then you should do so with the expectation that you will be traded with a bit better of a rate of return. Now, the more risk and volatility that you're willing to accept, the more return you should be expecting back for putting up with all of that. Of course you can go too far with many things in life - and you can go too far with this. You can take on too much risk and everything can blow up in your face.
Now I'm a retirement planner; my clients need their assets to be there. What I find that most people are looking for is to put up with reasonable amounts of volatility and risk in exchange for a reasonably good rate of return.
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