Since much of what we're reading these days is about the drought of 2012 and its impact on commodity prices and ultimately its effect on food prices, I am reminded of the risk-reward tradeoff I learned about back in my college days. It makes me wonder why no one pays much attention to the risk? side of the equation. According to the risk-return tradeoff, you must spend money to make money. Or more correctly, it says reinvested money can render higher profits only if it is subject to the possibility of being lost.?
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