"Risk and Return" refers to the relationship between the potential risk of an investment and the expected return. Generally, higher-risk investments, such as stocks or cryptocurrencies, have the potential for higher returns, while lower-risk investments, like bonds or savings accounts, typically offer more modest returns. Investors must assess their risk tolerance to make informed decisions. Understanding this concept is crucial for effective investing. By balancing risk and return, individuals can create a portfolio that aligns with their financial goals. Tools like diversification can help manage risk while aiming for desirable returns, making it essential for long-term financial success.