Risk And Return

46. Knowledge Check

Which of the following is the most effective way to eliminate 'unsystematic risk'?

Comments

  1. Name: sserubira Elizmas
    Country: Uganda
    Cohort:9
    Lessons: I have learnt that Risk and return are two sides of the same coin.
    Meaning that for every investment decision one makes must be balanced between gain and loss

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  2. Full Name: Chikondi Zulu
    Cohort:35
    Country: Zambia
    Topic 2: Risk and Return

    My key take aways from the second topic was return, the profit after investment and Risk,is the uncertainty of investing can not be avoided.thry are the main factors that drive investment higher risk produces higher return . It's imo to know how much risk you can under take financially and also emotionally or rather psychologically. This helps you choose an investment that won't do do much harm on you. Also understanding they type of risk associated with they type of investment helps, so asking for help from experienced professionals is better than making blind descions.

    While choosing an investment inflation should also be considered ass you may be investing in something that ma not work for you over time. Diversifying is advised as you invest as this spreads risks in different areas.

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  3. Carol Zulu
    Cohort 29
    Zambia
    Topic risk and return.
    Risk is the possibility of losing money because things are not stable and they fluctuate,like exchange rate and prices.
    Return is the reward or profit you get for taking the risk The to go together,the higher the risk,the higher the possible return, and the lower the risk, the lower the return.

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  4. Full name: Virginia Kurambwi
    Country: Zimbabwe
    Cohort 35
    Risk is the possibility that your investment will perform differently from what you expected, while return is the gain or loss you actually receive. The greater the potential return, the greater the risk an investor may need to accept but taking greater risk never guarantees greater returns.

    Key lesson: Don't ask only, “How much can I make?” Ask, “How much could I lose and can I afford that loss?”

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  5. Chelesani Ncube, Zimbabwe - Cohort 40

    The KAFI Financial Literacy Leadership Fellowship was eye-opening. One topic that stood out for me was Risk and Return. I learned that risk is the possibility of losing money when things are not stable, like exchange rate fluctuations and price changes. Return is the reward or profit you get for taking that risk. The facilitators explained it clearly: risk and return go together. The higher the risk, the higher the possible return, and the lower the risk, the lower the return. This lesson helped me understand how to make smarter financial decisions. The training was practical, and I’m grateful for the support and community. Highly recommend KAFI to anyone who wants real financial knowledge.

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