answersLogoWhite

0


Want this question answered?

Be notified when an answer is posted

Add your answer:

Earn +20 pts
Q: Was the reward of owning land worth the risk?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

Why did not america help PRISONERS of Auschwitz?

the risk/cost to reward ratio was not worth it.


What problems did homesteaders face and what was the award of owning land worth the risk?

The reward of owning land sometimes was simply survival. Hardships that they faced included opposition from local Native peoples, they needed to build boundaries on their land where it was open in the past and it inhibited the lives of the native people as well as the wildlife. Weather was a tremendous issue as well. One other example was the winter of 1886. If you look at artwork created by Charles M. Russell you will find pictures reflecting the hardships - one in particular is a cow starving as the winter was so hard they were unable to find food nor break ice to get water nor find shelter.


Profit is not reward for risk taking?

My personal opinion is that profit is the reward of risk avoidance rather than risk taking.


What type of the risk is acceptable in the risk managment process?

A risk that equals or is less than the reward.


When do you reward gambling risk behavior?

Never


What are the theories in?

There are a lot, but Harry Markowitz's theory of diversification is one of the most important, and won him the nobel prize. It's based on the idea that if I invest in one company, I assume a certain amount of risk for a certain amount of reward. But, if I invest in that same company and 1 other random company with a similar risk/reward ratio- then my risk is reduced while my reward is the same. Think about it. If I invest in a software comapny and a gas company, there is 50/50 chance that each one does well. So if one does bad, then I still have a 25% chance of the other one making that reward up. And I can continue to invest into different companies reducing my risk while keeping my reward the same. Investing in about 30 companies is statistically the best you can do, as far as risk vs. reward. After about 30 companies, the benefits are so minimal that most economist agree it is not worth it. So by diversifiying my investments, I am keeping the same level of reward (which is income) while reducing my risk. When I reduce my risk, I can increase my investment, generating greater rewards.


What are the theories in finance?

There are a lot, but Harry Markowitz's theory of diversification is one of the most important, and won him the nobel prize. It's based on the idea that if I invest in one company, I assume a certain amount of risk for a certain amount of reward. But, if I invest in that same company and 1 other random company with a similar risk/reward ratio- then my risk is reduced while my reward is the same. Think about it. If I invest in a software comapny and a gas company, there is 50/50 chance that each one does well. So if one does bad, then I still have a 25% chance of the other one making that reward up. And I can continue to invest into different companies reducing my risk while keeping my reward the same. Investing in about 30 companies is statistically the best you can do, as far as risk vs. reward. After about 30 companies, the benefits are so minimal that most economist agree it is not worth it. So by diversifiying my investments, I am keeping the same level of reward (which is income) while reducing my risk. When I reduce my risk, I can increase my investment, generating greater rewards.


What is the pros and cons of risk taking?

Pro - The greater the risk, the greater the reward Con - Risk = Loss


What is a reward that follows an action is called?

risk taking


What are the ratings and certificates for Ax Men - 2008 Risk and Reward 1-2?

Ax Men - 2008 Risk and Reward 1-2 is rated/received certificates of: Australia:PG


What is the first rule of finance?

High Risk, High Reward


Are people willing to take the risk of starting owning and operating a business?

entrepreneur