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:
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?