Dear MBA students,
As the old saying goes, "when there is a will, there is a way", similarly when there is a return, there is a risk as well. They are two sides of a single coin, they are like twins, they cannot be parted.
It is important that one studies the risk and return both, because most of the investors tend to overlook the risk part of the investment. Unfortunately, greed for return blinds us for the risk associated. Sometimes, investors are overconfident on their judgement and neglect the risk. In any case, as finance managers, we get the opportunity to earn money by "scaring" the investors about the risk.
From the GTU exam's point of view, this topic may be asked in theory or there can be a numerical question. Go through the ppt attached and try to solve numerical questions. I will upload the audio very soon.
ppt of risk & return
As the old saying goes, "when there is a will, there is a way", similarly when there is a return, there is a risk as well. They are two sides of a single coin, they are like twins, they cannot be parted.
It is important that one studies the risk and return both, because most of the investors tend to overlook the risk part of the investment. Unfortunately, greed for return blinds us for the risk associated. Sometimes, investors are overconfident on their judgement and neglect the risk. In any case, as finance managers, we get the opportunity to earn money by "scaring" the investors about the risk.
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| Greed makes us forget the risk |
From the GTU exam's point of view, this topic may be asked in theory or there can be a numerical question. Go through the ppt attached and try to solve numerical questions. I will upload the audio very soon.
ppt of risk & return
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