All investments involve some degree of risk, what is the reward for taking on risk

Answer 1

Higher Returns

Answer 2

The reward for taking on risk is a rate of return in excess of the risk-free rate of return. Ideally, the additional return should be commensurate with the level of risk. In other words, when the investment is not a sure thing (treasury bills are often thought of as “risk free”), you want to be rewarded adequately for taking on that risk.