This is as a result of being in a position to discover the right combination of such property may help the investor obtain the very best potential return for a sure stage of danger and vice versa. Every investor is conscious that the value of his money at present won’t be the identical within the subsequent 10 to twenty years. For example, cash at present is not going to provide the identical buying power over the following 20 years. This is a crucial fact that needs to be acknowledged by traders when making selections. Financial economics additionally research dangers and identifies methods to attenuate investment-related risks.