Question

What is the relationship between financial decision making and risk and return? Would all financial managers view risk-return trade-offs similarly? Pick a fictitious company or the company you chose in your weekly discussion and examine how the company management views risk-return trade-offs. Why do organizations take risk? Support your position with figures or charts. Ensure all the questions are addressed.

Your paper must be two-pages in length, double spaced with proper citation and references. Use at least two peer reviewed articles or scholarly journals from your online library to support your discussion.

Answer 1

What is the relationship between financial decision making and risk and return?

The relationship between finanacial decision making and risk & return is simple. The risk and return factor depend on individual to individual. The risk for some campanies may be higher or for some companies may be lower, it also dpend on their goal of returns.

The higher risk, higher returns in rewards and similarly in lower risk , lower in returns.

Would all financial managers view risk-return trade-offs similarly?

No, this is because it would be depend on the firm, Finanacial managers and the goal set forth by the firm, There are some firms cater to higher risk of the firm and is entitled to asset of the firm.

Pick a fictitious company or the company you chose in your weekly discussion and examine how the company management views risk-return trade-offs. Why do organizations take risk? Support your position with figures or charts. Ensure all the questions are addressed.