Principles of Finance

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We examined two very important topics in finance this week: risk and return. To summarize our discussion of the tradeoffs involved with risk and return, view the Evaluating Business Performance: Small Business Case Studies video:

Risk-Return Tradeoff
From Title: Fundamental Concepts in Financial Management Volume 2

 
Critically reflect on the importance of the risk and return balance.  Consider the following:

  • Can we ever have any return without some type of risk?
  • If you take on a large risk, are you guaranteed a large return? Why or why not?
  • What other factors play into risks that are not covered in the video?
  • When have you had to consider risk and return in personal or professional decision-making?

 
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