Investments with the best chance of high returns typically have the most uncertainty. I understand that the portfolio will frequently have large changes in value. Returns significantly exceed inflation. Returns moderately exceed inflation. Returns slightly exceed inflation.
Returns only keep pace with inflation.
Investors can try to increase return or reduce risk. Increasing return is more important but still try to reduce risk. Reduce risk is more important, but still try to increase return. The graphs below show the annual returns for three hypothetical investments over a 20-year period. Investment A b. Investment B c. Investment C 6.