The principles of risk and return: Fundamentally, the greater the return the greater the risk; in other words there is a direct relationship between risk and return. An investor acting in rational self interest would only invest in a speculative investment if the investor is compensated by a greater return. For instance, gambling has the greatest risk attached, and also it potentially has the greatest return. However, government bonds have little to nil risk - …showed first 75 words of 1770 total…

…showed last 75 words of 1770 total…people who want to obtain the desirable land, thus the price is inflated by demand (demand pull inflation). I would advise all three investors to stay away from many of the obscure investments and stick to main stream ones which are regulated by government bodies such as ASIC. I would also advise them to be careful moving into some areas of the overheated property market at present unless the have considerable knowledge in this area.