The reward of owning land can often outweigh the risks, as it provides opportunities for wealth accumulation, stability, and investment. Land ownership can lead to financial security through property appreciation and the potential for income generation, such as farming or rental income. However, risks like market fluctuations, natural disasters, and maintenance costs must be carefully considered. Ultimately, the value of land often hinges on individual circumstances and the ability to manage these associated risks.
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.
There is no risk
Because they were desperate for the land. They needed to expand to a larger area, and wouldn't mind risking their lives. They also didn't want any of the other countries to claim it before they did.
The political risk refers to the instability of the political system in a country.
Account freezing and money laundering are the mostly frequently encountered political risks in the foreign business. Being scammed is another political risk.
the risk/cost to reward ratio was not worth it.
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.
The risk-to-reward ratio is a measure used in investing and trading to assess the potential reward relative to the amount of risk taken on an investment. It compares the amount a trader or investor stands to lose (the risk) to the amount they stand to gain (the reward). For example, if the risk is $100 and the potential reward is $300, the risk-to-reward ratio is 1:3. This ratio helps traders make decisions by balancing risk and reward to ensure that potential gains justify the risks involved. A higher ratio, like 1:3, suggests that the potential reward outweighs the risk, which is typically preferred by investors looking for more favorable outcomes. The ratio serves as a guide for setting stop-loss and take-profit levels, helping to manage risk while aiming for profitable returns.
My personal opinion is that profit is the reward of risk avoidance rather than risk taking.
A risk that equals or is less than the reward.
Never
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.
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.
Pro - The greater the risk, the greater the reward Con - Risk = Loss
risk taking
Using risk-reward ratios can significantly improve your trades by helping you manage risk and maximize potential returns. The risk-reward ratio compares the potential profit of a trade to its potential loss, allowing you to assess whether a trade is worth taking. A common strategy is to aim for a ratio of at least 1:2, meaning you risk $1 to potentially gain $2. By consistently following a favorable risk-reward ratio, even if you win only half of your trades, you can remain profitable over the long term. It also helps traders maintain discipline, avoid emotional decision-making, and protect their capital by ensuring that potential rewards justify the risks taken.
Ax Men - 2008 Risk and Reward 1-2 is rated/received certificates of: Australia:PG