I hope you enjoyed our discussion on risk. We looked at Deal or No Deal as a way to determine how much risk you are willing to take. Remember risk is the probability of an event (good or bad - usually bad) happening. In business, and life, you must make discussions based on risk.
The risk/return analysis is the basis for most business decisions. Therefore you must analyze both the risk and the return and determine your limit for both.
Remember scared money does not make money.
I remember this class, the Deal or No deal class session was an informative and fun session. I agree that scared money doesn't make any money. I also realized that being frugal and practicing delayed gratification will also enhance your chances of being financially set in the future. Understanding risk is very important when dealing with finances because you could literally be rich today and poor tomorrow all over a split dicision as the game sort of displays. So it is important to understand the risk you take. Although scared money makes no money, no money doesn't make more money.However because of this class I was encouraged to invest.
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