This chapter talks about the advantages of taking risk and the calculations of when you should inheriet the risks. Risks are good. When you have no risk you will have no rewards. When you take risks there needs to be a goal that you want to set out to achieve. You should not take risk when you do not have a clear understanding of the benefits you will have if the risk pays off or the loss you could face if the risk goes south.
This chapter talks about how to calculate the Risks that you deside to take. What are the potential payoffs and losses. The chapter shows the different formulas that are needed to calculate the risk. What you get from the formulas will give you a better understanding of what risk you should take.