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:
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?