Discussion post – risk and reward and but it wasn’t me!
NEED TO ANSWER ALL TWO DISCUSSION QUESTIONS…also specify which answer goes to which discussion question
For this discussion, 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).
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?
As children, many of us dreamed of owning a business with our best friend but could not fathom the intricacies that come with it. We are no longer dealing with the 50-cent profit from the lemonade stand; we are talking about profit/loss margins that can cost us our reputation and security.
Take a moment to put yourself into a business relationship, such as a partnership, with a friend of yours. Pinpoint a situation in which your business partner can make an ethical decision that will in turn impact you. Summarize the situation and then determine how it will affect the company, how it will affect you (both personally and professionally) and how you can protect yourself from liability.
Remember we are dealing with ethical issues here not poor business risks that are ethically backed!