Why is there a trade-off between risk and return?. Management
The market rewards risk because it is on average risk averse, so a risk premium is needed. Returns are a reward for delaying consumption plus a reward for risk held.
Are all risks rewarded? No. By choosing a poor portfolio it is possible to have excessive risk for a given return. So unnecessary risks that could be diversified away may not be rewarded.
Materials by theme:
Emotions and Health
Lections
The Psychology of Emotions
Lections
Intro to Forensic Psychology
Lections
Forensic Psychology. Deception.
Lections
Rational Choice Theory
Lections
Political economy of the media
Lections