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    peazo100's Avatar
    peazo100 Posts: 1, Reputation: 1
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    #1

    Mar 18, 2009, 04:57 PM
    Risk and return
    How does the relationship between risk and return drive individual's investment decisions? How might age factor into these decisions?
    hoightoider's Avatar
    hoightoider Posts: 41, Reputation: 2
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    #2

    Mar 18, 2009, 06:24 PM

    If one makes a high risk investment one has more of a chance to lose their money and needs to be rewarded with a better return than one who invested in a low risk investment. The possibility of a higher return for risky investments is needed to attract investors who can afford to take a loss.

    Age is a factor in selling life insurance policies or investing in a business where the key decision maker is older and whose death would put your investment at risk.
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