Understanding Risk and Reward in Finance
Learn more about the role and importance of risk and reward in your financial dealings and investments.
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CertificationView course modules
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.
Module 1: Understanding Risk and Reward in Finance
Risk and Reward - Learning Outcomes
Introduction to Risk and Reward
Return on Capital
Investment vs. Consumption - Part 1
Investment vs. Consumption - Part 2
Wealth Destruction - Part 1
Wealth Destruction - Part 2
Office Space Conundrum
Module 2: Risk and Reward in Finance Assessment
Having completed this course the learner will be able to: - Explain the role of risk and reward in investment; - Describe the different types of risk and reward; - Explain the difference between investment versus consumption; - Describe how wealth can be destroyed by property bubbles.
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 an official Certificate, which is a great way to share your achievement with the world. Your Alison Certificate is:
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