doing business is taking risk but it is not alway that we have to choose between low risk and high return. it about we have to find out the business which is lower at risk and higher at return by superior management skills taught in MBA program.

cfa propose that we can not find low risk but high return company and advance to make a portfolio with grand analysis. if this proposition of cfa is correct , no company grow faster than its competitors. or if a company grow faster than competitors just because it is more lucky when it take high risk and high return business.

before the edes of cfa , there is only two kinds of business , low risk with low return and high risk with high return. if the business world work this way, the big company is big just because they take higher return with high risk and they are lucky in doing so. in fact, big company is big because it create competitive advantage and get more profit at lower risk.

cfa teach us a business world in which there is no business with lower risk and higher return . cfa teach us a business world in which every business with higher return must contain higher risk. if this business world exist, we do not need MBA program and good managers. in this business world, everybody is the same. lower risk, lower return and higher risk higher return.

this passage tells us about the natural way of working of business world.