This week we are all studying the trade off between risk and return. At the end of the week we will...

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This week we are all studying the trade off between risk and return. At the end of the week we will have a clear idea of the most important thing when it comes to investing is risk management.

Please debate the importance of how you can manage your portfolio's risk in the current environment (FED increasing rates again, political uncertainty...). Should I stay in cash? bonds?? or take more risk in equities???

David · Accepted Answer

Managing portfolio 
When it comes to managing portfolio through establishing trade off between risk and return, it can be said that there is no investment in forms of cash, bonds or equities. For managing risk and return, balanced approach is the only solution. In detailed terms, every investment is having some degree of risk whether it is stock, bonds or equities which reduces its value and associated returns (Nguyen, 2012). In this context, it is argued that risk and return proportion of the investments vary in accordance to the market conditions.

This week we are all studying the trade off between risk and return. At the end of the week we will have a clear idea of the most important thing when it comes to investing is risk management. Please...

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