What Is The Relationship Between Risk And Return.?


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Lois Dawes answered
Now in today's day this is a very very good question.  Economists of the old school will tell you that when one invests if you want to get the most out of your return in the shortest possible time the best thing to do is to  invest in a high risk investment like bonds.  Now current history will show that sometimes you can be risking in "air" because your return in truth and in fact is dependent on production not interest rates because they rise and fall in a minute.  Even if a central bank or Reserve like the one in the US keeps interest rates low the banks have their own interest rates which might be based on how much they guess they can get based on a guess as to how much money some people will bank in time enough for the bank to make enough money before some people hopefully less will come to the bank to withdraw money expecting an interest which should be less than the bank will earn from lending money but could be more if the bank has to be reducing interest to attract more money from people who want higher interest.  Get the point this is a money Chance which is exacerbated when money is printed and printed because there is no real production going on so people are grabbing for 'air".

If you read the Bible God tells us that all thing that are produced  belong to him.  He says 1/10th is Holy which really means give me something back as thanks and he will know what to do with it...he leaves it for the time of jubilee or need...this is saving. They rest he leaves for us to use to take care of ourselves and our neighbours "Loving God and our neighbours as we love ourselves.  He gives us talents and says multiply them when you give life to these talents by creating new tithes (ie. Multiply by 5) you can say you own it. Like copyright from an invention. He also says we should not bury our talents so he hates lazy people and those who expect to get rewards from "air' same thing right>>>>>>

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