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Risks

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Finance for Academics

Part of the book series: SpringerBriefs in Finance ((BRIEFSFINANCE))

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Abstract

In finance and investment, risk is the likelihood of losing money. Warren Buffett, one of the most successful investors in history, claims he lives by two principles: (1) do not lose money; and (2) do not forget the first principle. Unfortunately, this is easier said than done. Many dangers confront investors. We will discuss the most serious of them so that everyone understands at the outset that investment is not a totally benign activity. We begin our tour of risk with economic risk.

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Notes

  1. 1.

    This is because it is based on the natural log of 2, ln 2 = 0.6931 To find out how long it takes for something to triple, use 110, which is based on ln 3 = 1.0986.

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Authors and Affiliations

  1. Department of Political Science, University of Kansas, Lawrence, KS, USA

    Ronald A. Francisco

Authors
  1. Ronald A. Francisco
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© 2012 Springer Science+Business Media, LLC

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Francisco, R.A. (2012). Risks. In: Finance for Academics. SpringerBriefs in Finance. Springer, Boston, MA. https://doi.org/10.1007/978-1-4614-3244-9_2

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