The Relationship Between Risk and Return

Risk and Return is one of the many concepts covered in our Financial Management certificate. Risk has a clear impact on almost everything a firm does. In this certificate, you will examine the relationship between risk and return, the impact of risk related to the assessment of projects and the market valuation of a company.

In this video, Professors Carvell and Gibson lay the groundwork for the exploration and discussion of risk, including what academics mean when they discuss the empirical evidence surrounding risk, how the market responds to risk, how risk affects your organization, and why people are “hardwired” to demand greater returns for greater risk.

Understanding the concept of Risk and Return is imperative when exploring your organization’s financial decision-making process. Our Financial Management certificate will equip you, as a non-financial manager, with this knowledge and much more. To find out more, visit the Financial Management certificate page.