Highlighting The Relationship Between Risk and Returns on Investment (Eng // Esp)

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(Edited)

In the business world, risk and returns on investment are important terms that can't be ignored due to their direct effects and impacts on the profitability of an individual and organizational portfolio.

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The sole reason for investing in a particular portfolio is to make profit and as a result, most if not all organizations in the world will go for an investment with a reasonable amount of returns, be it short-term or long-term investment, so that an individual or organizational objective of maximizing profits could become a thing of reality.

To have a better understanding of the relationship between risk and returns on investment, there is a need for us to look at the meaning of these terms one after the other.

What is the meaning of the term Returns on investment?
Returns on investment is a term used to explain the profit made from investing individual or organizational financial resources in an anticipated viable portfolio. The term returns solemnly depend on the risk associated with such investment and as a result, there is a need for us to shed more light on the term risk.

What is the meaning of the term risk?
Risk is the term that implies future uncertainties associated with earnings from an investment. The risk associated with investment often determines the returns from it. Simply put, the higher the risk on a particular investment, the higher the returns on such investment, and vice versa.

Conclusion, Before committing your financial resources to any investment, the service of a professional needs to have an in-depth knowledge of the risks associated with such investment.

Thanks for stopping by.

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En el mundo de los negocios, el riesgo y el rendimiento de la inversión son términos importantes que no pueden ignorarse debido a sus efectos directos e impactos en la rentabilidad de una cartera individual y organizativa.

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Fuente

La única razón para invertir en una determinada cartera es obtener beneficios y, en consecuencia, la mayoría de las organizaciones del mundo, si no todas, optarán por una inversión con una rentabilidad razonable, ya sea a corto o a largo plazo, para que el objetivo individual u organizativo de maximizar los beneficios se convierta en realidad.

Para comprender mejor la relación entre el riesgo y el rendimiento de la inversión, es necesario que examinemos el significado de estos términos uno tras otro.

¿Qué significa el término rendimiento de la inversión?
El rendimiento de la inversión es un término que se utiliza para explicar el beneficio obtenido por la inversión de recursos financieros individuales o de una organización en una cartera previsiblemente viable. El término rentabilidad depende solemnemente del riesgo asociado a dicha inversión y, por consiguiente, es necesario que arrojemos más luz sobre el término riesgo.

¿Qué significa el término riesgo?
Riesgo es el término que implica incertidumbres futuras asociadas a los beneficios de una inversión. El riesgo asociado a la inversión suele determinar el rendimiento de la misma. En pocas palabras, cuanto mayor sea el riesgo de una inversión concreta, mayor será el rendimiento de dicha inversión, y viceversa.

Conclusión, Antes de comprometer sus recursos financieros en cualquier inversión, es necesario contar con los servicios de un profesional que conozca en profundidad los riesgos asociados a dicha inversión.

Gracias por visitarnos.



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It is always the best to know whatever you are getting into before venturing into any form of investment to avoid running at a loss.

Thank you for sharing.

#dreemerforlife

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Yeah, we don't invest our resources in any investment/portfolio without having an in-depth knowledge of what one is venturing into.

Thanks for stopping by

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Investments must be made when one is quite sure of the return and the possible risks attached to it.
If not, the person might get overwhelmed by the risks as he was expecting it and end up losing the returns as well, which is determined by the risk.

#Dreemerforlife.

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You are very much correct sis, Thanks for stopping by.

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