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Risk-reward ratio

Business Risk-return trade-offRisky asset

Risk-reward ratio
Relationship of substantial reward corresponding to the amount of risk taken; mathematically represented by dividing the expected return by the standard deviation.
Riskless or risk-free asset ...

 


risk-reward ratio: A measure of an investment's ability to generate high returns versus the possibility of losing money on the investment.

Risk-reward ratio
Used in the context of general equities. Concept of demanding substantial reward that corresponds to the amount of risk taken; mathematical represented by dividing the expected return by the standard deviation.
Risky asset ...

Risk-reward ratio
"A comparison of how much risk a trade has to its profit potential."
nisbat as Si'r ila ar Ribh ...

The basic concept that higher expected returns accompany greater risk, and vice versa.
Risk-reward ratio ...

unsuccessful - because of unlucky timing, incorrect information, unforeseen events and just plain getting it wrong. Options are a useful tool for limiting potential loss and maximizing potential gain- in other words, improving the risk-reward ratio ...

See also: Controlling interest, Banks, Beneficial owner, Credit quality, Federal reserve board

Business Risk-return trade-offRisky asset

 
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