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INTRODUCTION The researchers found that risk-return associations depended on the measures used by examining the association between managerial assessments of risk and expected return using non-experimental data from specific commercial lending decisions. BACKGROUND INFORMATION The study points toward the need for more careful understanding of managerial definitions of risk and return, careful handling of leads and lags, and understanding risky decisions in the marketplace. Within this study there is evidence of a conservative nature in managers’ adjusting to new information regarding the risks of decision-making. The researchers examined the relations between assessed risk and expected return as seen in the bank’s annual review of each borrower. The study focuses on the risk-return relations found in a large set of borrow-back interactions within a single commercial bank. Commercial lending provides an excellent site for risk studies for a multitude of reasons. First, commercial lending decisions provide data on explicit risk and expected return estimates co