Monday, 30 December 2013
Risk and Return
A little sharing on this blog, as we learn and go through the PB303 and PA305 course for the entire semester, we should be able to identified on the RISK vs RETURN, on the PB303 side, we should known the banking product which use by the user for investment such as Fixed Deposit Account, Unit Trust Account as well as Shares Investment,
On the PA305, you've learned on how should you allocate your money and surplus into something which beneficial and valued to your money.
The chart above has a story to tell, where it tells the relationship on risk and return, As we go further on the finance and investment, we should be familiar with the term of "HIGH RISK HIGH RETURN" it begins with cash where cash is less risk and less the return ones to gain.
It seems like when we invest on Shares, as we can see above chart, it has the highest rates of return an highest Risk as well,
Those who are a risk taker, they will go for shares where the risk is higher yet the same with the yield, it is depends on individual on determining what they look for and what they capable of.