ABSTRACT
The rate of interest yielded by an investment depends largely on the degree of risk which the investor, rightly or wrongly, considers that he will run by putting money in it. Some processes are from their very nature risky, for instance, mining. New processes of any kind are also, of course, risky as investments. Investors will need the expectation of a high rate of interest to induce them to run the risk of getting nothing or even of losing their capital.
