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Understanding Risk and Reward in Finance - Revised

Accounting
Free Course
All investments carry a certain degree of risk, but risk and reward go hand in hand and are important elements of investment. The rule of thumb that most investors follow is the higher the risk, the higher the potential return. This course focuses on the role of risk and reward and the different types of investments available depending on where you plan to invest your money. It also provides a clear comparison between investment and consumption.
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  • Duration

    1-2 Hours
  • Assessment

    Yes
  • Certification

    Yes
  • Responsive

    Yes
  • Publisher

    Khan Academy

Description

Outcome

Certification

View course modules

Description

This course begins by explaining the role and importance of risk and reward in investment. It then describes the different types of risk and rewards for the different types of investment. You will learn the definition of human capital and its significance when it comes to investing your money. The reason why we invest is because of the Return on Capital(ROC) that we can get. This course will discuss examples of investments and gives you an idea of how much ROC you can get from each.

You will then learn the difference between investment and consumption so you will know if the money you are willing to spend is a wise investment or not. You will also cover how a housing bubble can actually lead to wealth destruction. You will then study office conundrums and the possible actions taken that might solve this problem. This course will finally discuss subprime loans and jingle mail.

No pain, no gain. This cliche has often been used to describe something that we don't want to do but need to do, and it is particularly applicable in the field of investment. Investing carries a certain amount of risk, and with that risk comes some pain, and also some gain. If you are planning to invest your hard-earned money, take this course first so you will know the rewards you can reap for the amount of risk you are willing to take. Start learning something valuable, today.

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Learning Outcomes

Having completed this course the learner will be able to:


  • Explain the role of risk and reward in investment
  • Assess risk and reward in investments
  • Describe the different types of risk and reward
  • List the factors of production
  • Compare and contrast investment and consumption
  • Describe how wealth can be destroyed by property bubbles

Certification

All Alison courses are free to enrol, study and complete. To successfully complete this Certificate course and become an Alison Graduate, you need to achieve 80% or higher in each course assessment. Once you have completed this Certificate course, you have the option to acquire official Certification, which is a great way to share your achievement with the world. Your Alison Certification is:

Ideal for sharing with potential employers - include it in your CV, professional social media profiles and job applications
An indication of your commitment to continuously learn, upskill and achieve high results
An incentive for you to continue empowering yourself through lifelong learning

Alison offers 3 types of Certification for completed Certificate courses:

Digital Certificate - a downloadable Certificate in PDF format, immediately available to you when you complete your purchase
Certificate - a physical version of your officially branded and security-marked Certificate, posted to you with FREE shipping
Framed Certificate - a physical version of your officially branded and security-marked Certificate in a stylish frame, posted to you with FREE shipping

All Certification is available to purchase through the Alison Shop. For more information on purchasing Alison Certification, please visit our faqs. If you decide not to purchase your Alison Certification, you can still demonstrate your achievement by sharing your Learner Record or Learner Achievement Verification, both of which are accessible from your Dashboard. For more details on our Certification pricing, please visit our Pricing Page.

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