Thank you Professor Damodaran for the videos. I'm learning a lot, working your Nabisco-ed joke into every conversation I have, and applying my newfound knowledge to my own analyses. I like your definition of risk, and I think it applies to most risky things in life. I have one question though. Graham would always say that risk is not correlated with returns, but rather on intelligent effort. I would imagine he would disagree that risk is correlated with return, for the investor limits his downside by thorough analysis. I respect your assessments on everything else. Do agree with this concept of risk applied to investing and is it the right way to think about things?
+Aaron Chow i think risk and return models help us have a framework to rationally think about investments before our fear, greed and irrationality kicks in. and it is also academincally or mathematically quantifiable and justifiable. inteligence on the other hand may be really cool and amaizing but not rational and it is only aplicable on a peson to person basis. looking back after the results are in you can say such and such was intelligent but doing it in the now may seem risky and irrational.
Professor, I would never be tired to say thank you for your work. Learnt a lot really a lot from you
Thank you Professor Damodaran for the videos. I'm learning a lot, working your Nabisco-ed joke into every conversation I have, and applying my newfound knowledge to my own analyses. I like your definition of risk, and I think it applies to most risky things in life. I have one question though. Graham would always say that risk is not correlated with returns, but rather on intelligent effort. I would imagine he would disagree that risk is correlated with return, for the investor limits his downside by thorough analysis. I respect your assessments on everything else. Do agree with this concept of risk applied to investing and is it the right way to think about things?
+Aaron Chow
i think risk and return models help us have a framework to rationally think about investments before our fear, greed and irrationality kicks in. and it is also academincally or mathematically quantifiable and justifiable. inteligence on the other hand may be really cool and amaizing but not rational and it is only aplicable on a peson to person basis. looking back after the results are in you can say such and such was intelligent but doing it in the now may seem risky and irrational.
Thanks sheilla karemi for taking the time to answer!
im glad you think so....