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It has been suggested in this course that we should not rank investments by the expected return only. Why not? It is just the Expected
It has been suggested in this course that we should not rank investments by the expected return only. Why not? It is just the "Expected return" which is not necessarily the return you will actually get next year. I should not rank them according to "Expected return," because I have no idea how to calculated "Expected" returns. O "Expected Return" alone does not consider the risk of the investment There are too many other things to consider, like the nature of the company's business, and the liklihood of bankruptcy, O "Expected return" is simply a "made up" statistic. All of these are valid reasons why you should not rank based solely upon Expected Return
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