The risk-return tradeoff is at the core of what asset allocation is all about. It's easy for everyone to say that they want the highest possible return, but simply choosing the assets with the highest "potential" isn't the answer. What differentiates investors’ risk appetite and influences their investment decisions is the ability to trade off risk and return based on their overall objectives and investment horizon. Generally, Investors with longer term investment horizons can invest in relatively riskier products in an attempt to improve the return over the long term
