Risk and return are two of the most fundamental and interconnected concepts in the field of finance. They are the yin and yang of investment decision-making, guiding investors and financial professionals in evaluating the trade-offs between potential rewards and uncertainties. At its core, the relationship between risk and return is about striking a balance between seeking higher returns and managing the associated risks. This balance is crucial because, in the financial world, no investment is entirely free from risk, and understanding how risk and return are intertwined is paramount to making informed financial decisions.
Risk and Return Table:
To appreciate the interplay between risk and return, let's examine a simplified table that illustrates different investment options and their corresponding risk-return profiles: 
In this table, we have various investment options, including stocks (A and B), bonds (X and Y), and a savings account. Each investment comes with an expected return and a measure of risk, represented by the standard deviation of returns. Stock A, for example, offers a higher expected return of 10% but carries a higher risk of 15% compared to Stock B, which has an expected return of 8% and a lower risk of 12%.