In finance, it's generally believed that taking on more risk should lead to higher returns. It doesn't. It's a puzzle that has long confused financial experts. Subscribe to our newsletter for the ...

Discover how the risk-adjusted discount rate reflects investment risk and return, helping you to evaluate the valuation of projects with potential risk.

An investor will take on more risk only if they expect higher returns in compensation. The idea is a cornerstone of financial theory. Yet look around today and you have to wonder. Risks to ...