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?