Saturday School: Why You Cannot Separate Risk and Reward

To make the biggest amount of money, you have to risk losing your shirt. Watch this video to find out why this is true.

Saturday School: Why You Cannot Separate Risk and Reward Photo by Gustavo Frazao / Shutterstock.com

One of the fundamental concepts of investing goes like this: The greater the amount of risk you take on, the higher the potential reward.

While that “reward” sounds great, the notion of “risk” sounds … well, less wonderful.

Watch this Khan Academy video, and you’ll learn more about various types of investments and their risk level. You’ll also learn more about why risk and reward are almost inevitably tied together.

How much risk are you willing to take? Let us know in the comments below or on our Facebook page.

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