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1 - in general, higher risk => higher reward (if the risk comes off ok) That's why we look at risk-adjusted returns.
by steveplace 18y ago
1 - in general, higher risk => higher reward (if the risk comes off ok)
That's why we look at risk-adjusted returns.
- jbert 18y agoBut if the risk pays off, the returns are there right? And give the risk-taking company an advantage over it's competitors? It seems companies can't affored to account for low-probability, high-impact risks. If they do, they'll be out-competed by those who don't (unless/until such an event occurs).