How risky do you consider your human capital

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In investments, the lender expects you to repay the loan - but they can't know for sure whether you will or not. They can "secure" their loan against what you borrowed for - house or car etc. For the lender, there is the risk though that they don't get the full value back.

If you invest in shares - you are the last one to get paid. Everybody else gets paid before the shareholder. So they take a big leap of faith!
So debt (bonds, fixed interest securities) is lower risk than shares - but lower returns as well. That's the catch. If you expect high returns you are going to have to stomach higher risk - the roller coaster of returns is steeper.

How risky do you consider your human capital? Is you human capital higher/lower than the average? Why?

Reference no: EM133070347

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