Frankel's Rule is a principle in finance that suggests the expected return on an investment is directly related to its risk. Essentially, higher potential returns come with higher risks, while safer investments typically yield lower returns. This rule helps investors understand the trade-off between risk and reward when making investment decisions. The rule is often used in the context of portfolio management and asset allocation. By applying Frankel's Rule, investors can better assess their risk tolerance and choose investments that align with their financial goals, ensuring a balanced approach to growing their wealth over time.