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Balancing risk and return

What do you mean by the term balancing risk and return? Explain in brief?

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All decision making process comprises the future. We can just make decisions regarding the future; no matter how much we might regret it, we can’t modify the past. Business decision making is no exception to this common rule. There is just one thing certain regarding the future, which is that we can’t be sure what is going to occur. At times we might be capable to predict with confidence that what really takes place will be one of a limited range of the possibilities.

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