Have you considered the trade-off between risk and return when making an investment? Did it change your investment? Do you expect a risk premium related to the level of risk?
Yes, in every investment there is always a risk of losing. I think that is why not many people are always willing to invest on something. I would evaluate the rate of return and the rate of risk and sum it in the amount that would not affect me if I were to lose it. I would first do a research about about the risk premium and look at the prediction and then make a decision.
Why is the present value of a dollar more valuable than its future value?
One of the main reasons is because the money we have today can be invested to turn into more money in the future. Also, like the book mentioned, there is the risk that the money we were supposed to receive in the future is not paid to us.
Netsy's Thoughts 