Risk and Return

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: Fundamental Concepts in Financial Management

https://cdnapisec.kaltura.com/p/1067292/thumbnail/entry_id/0_hp2g2sx6/width/420/type/1/vid_sec/442

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

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