1.Have you considered the trade-off between risk and return when making an investment? Did it change your investment? Do you expect a return premium related to the level of risk?
Measuring the trade-off between risk and return is always of the most importance when investing. I always measure risk and return when making investments, even in investing my time. If i’m going to invest in a risky stock, i always expect the return to be higher. This gives investors incentive to invest in the more risky stocks.
2.Why is the present value of a dollar more valuable than its future value?
The time value of money has a-lot to do with the risk involved in possibly not being able to receive future money. That is why money is more valuable today than it could be in the future.
Burton's Macroeconomics blog 