If managers could have just one wish, many would ask for a crystal ball. With this tool, there would never be any worry about risk. The manager could look into the crystal ball and know exactly what will happen with each decision. Unfortunately, we do not have this luxury and must use other tools and techniques to determine the risks we face for the decisions we make. 

Understanding the types of financial risks, in What ways do you believe the trade-off of Risk-Return might influence organization and individual investment decisions?

Answer rating: 100% (QA)

The tradeoff between risk and return is a fundamental concept in finance that highlights the relationship between the level of risk and the expected r... View the full answer