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Johnson & Kwak argue risk always has been, and will be, a vital ingredient in the...

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lscrivy | Student, Undergraduate | Salutatorian

Posted May 8, 2013 at 7:28 AM via web

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Johnson & Kwak argue risk always has been, and will be, a vital ingredient in the making of profits. Eichengreen arugues that economic theories overrate risk. Which of them is right?

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Kay Morse | College Teacher | (Level 1) Senior Educator

Posted May 8, 2013 at 10:46 PM (Answer #1)

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In a complex world with complex business models and complex human psychology, the answer to whether the importance of risk in business is overrated or rightly rated depends upon variables in uncertainty and risk-taking behavior that is dependent upon psychological choice-making models. Once the variables, the question of rating of risk can be answered for that set of variables.

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Kay Morse

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