Ethan Penner, managing partner at Mosaic Real Estate Investors, discusses some of the common misunderstandings related to risk.

Penner provides examples such as the aspect of misunderstanding risk as far as tying risk and return together. Investors mistakenly assume that an investment with a high return carries a high risk and that a low-return investment carries a low risk. Penner says he has found that oftentimes risk and yield are inversely correlated rather than positively correlated.

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