Khadija is an investor who is good in analyzing the trend of stock market, she can analyze the relationship of risk with compensation- returns which shows that:

a.The lower the risk, the higher the return

b.The higher the risk, the higher the return

c.Revenue is more than expenses.

d.The higher the risk, the lower the return

Relationship of risk with compensation- returns generally shows that higher the risk, higher the return.

There is generally a positive relationship between risk and return. The analysis of risk return trade off states that, the higher the risk, the higher the reward—and vice versa. However, it does not provide assurance that if we take high risk, then we will get high return, But generally a lower risk investment has a lower potential for profit while a higher risk investment has a higher potential for profit but also there is a potential for a greater loss.

Therefore, on the basis of information given, correct option is (b) and other options are incorrect.