Risk and Reward-Discuss

We will consider the relationship between risk and reward and how it applies to a broader area of risk management. In this module we discussed various quantitative asset management tools employed by investors for determining an expected rate of return (reward).

First Paragraph
Please address the following questions:

• In your opinion, what are the ramifications of an investor electing not to use one of these tools?
• What steps, tools, or guidelines, have you applied in your professional lives to assess the relationship between risk and reward?

Second Paragraph
Expand on the ramifications of failure to use the Asset Management Tools available to an investor. List important reasons for using the tools.