FINANCE 6

What is meant by an investor’s required rate of return? How do we measure risk in an investment? What do you consider a “risky” investment and a “safe” investment? What do you consider the tradeoff between risk and return of investments? Why are these concepts important to business leaders in Saudi Arabia? Search the SEU library or the internet for an academic or industry-related article. Select an article that relates to risk versus return and doing business in Saudi Arabia. For your discussion post, your first step is to summarize the article in two paragraphs describing what you think are the most important points made by the authors (remember to cite the information, as appropriate). For the second step, include the reference listing with a hyperlink to the article. Please note, do not copy the article into your post and limit your summary to two paragraphs. Let me know if you have any questions. Enjoy your search. Understanding the relationship between risk and rate of return is important to understanding what kind of investments you, as an individual, might want to invest in. It is also very important for companies to help them understand how much their investors will expect in interest, dividends, or increase in stock value.

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