Lesson: Risk and Return

In this lesson, Nick Palazzolo, CPA, demystifies the intertwined concepts of risk and return, emphasizing their critical role in financial risk management. The desire to maximize returns while minimizing risk steers this discussion, as Nick defines risk as the uncertainty that brings the chance of financial loss. He sheds light on the dynamics between risk and reward, explaining that higher risk can potentially lead to higher returns and vice versa. With straightforward anecdotes and relatable examples, such as the comparison between government bonds and investing in startups like Uber and Netflix, Nick reinforces the core idea that risk and return are not only correlated but inseparable in the financial decision-making process.