As part of our goal to educate the public, we sometimes tackle some key investing subjects. This posting is a quick video on one key concept in investing: the risk/return tradeoff. In general, the more risk you take on, the greater your possible return. Think of penny stocks for example: They’re very risky and yet can have amazing potential for returns. At the other end of the spectrum are options such as a savings account or government bonds. They’re quite low-risk, but you’re not going to make whole lot of money on them. For this class of assets you’re looking at less risk, less return.
The video here is just a couple of minutes long – and clear and well presented,so feel free to check it out.