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Bigger risk, better reward Grin
not always the case. buying magic beans is really high risk.
ive never heard of magic beans actually paying off.
so not always the potential for higher reward just cuz something is higher risk.
If there is no potential for gain (or even recovery of your investment) then there is no risk, just guaranteed loss.
Risk means you don't know what is going to happen.
ok smartass o.O
my point was that higher risk does not always equal higher reward. if somebody said "buy these magic beans and go rob the giant the beans cost $100" then my risk is $100.
if some other dude said "buy my magic beans they are the real ones they cost $10,000. but you get what you pay for. no risk, no reward"
Then my risk is higher ($10,000 vs $100) but my payoff is the same (gold the giant owns) and my chances of getting magic beans are the same (pretty freakin' slim).
True, there are bad investments or ways to simply waste your money. Flip a coin and if it comes up heads up flush your money down the toilet. Tails, keep the money. Risky, but stupid.
In a competitive market these sorts of money-down-the-toilet situations don't usually exist and the principle usually holds though. Not always.