According to the information provided by Chua. In other words, if investors expect higher returns, they need to take higher risks; If you want to reduce the risk, you must accept a lower rate of return. This is because high-risk investment is usually due to the high risk of the investment object itself or the influence of market fluctuation, while low-risk investment often means stable cash flow and low market fluctuation.

If an investor wants to get a higher rate of return in the stock market, he may choose to invest in some companies with good growth, which may fluctuate greatly in the short term, but have greater growth potential in the long run. On the contrary, if investors want to reduce risks, they may choose to invest in some blue-chip stocks with stable returns and good performance. These stocks are usually relatively stable when the market falls, and the gains are small when the market rises.