Risk is one of the most powerful and dangerous concepts in finance - powerful because it allows individuals and companies to earn huge returns, but dangerous because it can cause their bankruptcy. How do you measure financial risk, what is the relationship between risk and return, and how can you - surprisingly - reduce your investment risk without sacrificing any returns?
This lecture will explain why even the simple idea of 'higher risk means higher return' is actually incorrect.
A lecture by Alex Edmans
The transcript and downloadable versions of the lecture are available from the Gresham College website:
www.gresham.ac.uk/lectures-an...
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