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  • Suggest You - Risk Versus Reward

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    In all investing situations, we will be confronted with both risk and reward. I cannot think of any investments that offer no risk with big reward. The most common investment opportunity I have seen is low risk - low reward, low risk- high reward, big risk - big reward, big risk - low reward.

    Big risk - low reward opportunities are everywhere. Buying a stock at any price will constitute a big risk - low reward investment opportunities. The odd is even worse than gambling where the house has a 55-60% chance of winning.

    You might be wondering how you can quantify risk. Reward is easier to quantify. If you buy stock A at X price and it has risen to Y, th

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    h big reward. The most common investment opportunity I have seen is low risk - low reward, low risk- high reward, big risk - big reward, big risk - low reward.

    Big risk - low reward opportunities are everywhere. Buying a stock at any price will constitute a big risk - low reward investment opportunities. The odd is even worse than gambling where the house has a 55-60% chance of winning.

    You might be wondering how you can quantify risk. Reward is easier to quantify. If you buy stock A at X price and it has risen to Y, t

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    d, big risk - low reward.

    Big risk - low reward opportunities are everywhere. Buying a stock at any price will constitute a big risk - low reward investment opportunities. The odd is even worse than gambling where the house has a 55-60% chance of winning.

    You might be wondering how you can quantify risk. Reward is easier to quantify. If you buy stock A at X price and it has risen to Y, t

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    risk - low reward investment opportunities. The odd is even worse than gambling where the house has a 55-60% chance of winning.

    You might be wondering how you can quantify risk. Reward is easier to quantify. If you buy stock A at X price and it has risen to Y, t

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    You might be wondering how you can quantify risk. Reward is easier to quantify. If you buy stock A at X price and it has risen to Y, then your reward is the difference between your selling price and purchase price. Some risk can be quantify while others aren't.

    Let's use an example for clarification purpose. What is the risk of buying Merck Co & Inc. (MRK)? The risk is well publicized. Investors' risk would be the potential Vioxx liability that stems from lawsuits. How much does MRK has to pay? Nobody knows for sure. We can only estimate. Some says $ 5 Billion. Another says $ 50 Billion. This is uncertainty and this is risk. You can reduce this risk by read

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