Risk and Return
In general, the more risk you take on, the greater your possible return. Low levels of uncertainty (low-risk) such as a savings account at your bank, or buying government bonds, are associated with low potential returns, whereas high levels of uncertainty (high-risk) are associated with high potential returns. According to the risk-return tradeoff, invested money can render higher profits only if it is subject to the possibility of being lost. Because of the risk-return tradeoff, you must be aware of your personal risk tolerance when choosing investments for your portfolio.
In our life, risk and return play a part in our nonfinancial lives, as well. Think of that lovely person you'd like to date, for example. Asking him or her out involves the risk of being turned down or embarrassed. But the possible return is significant, too, if you end up in a meaningful relationship.