Risk-return trade-off
The tendency for potential risk to vary directly with potential return, so that the more risk involved, the greater the potential return, and vice versa.
Risk-Return Trade-Off (business term)
Underwriting (insurance term)
Global Hedging (business term)
Associate in Risk Management (ARM) (insurance term)
Systems Safety Engineering (insurance term)
managing aspirated materials
accident (technology) ...
Modern Portfolio Theory - A set of principles that analyzes investment portfolios based on risk-return trade-offs and the diversification of investments intended to mute the effects of declines in the worth of specific portfolio holdings.
Modern portfolio theory
Principals underlying the analysis and evaluation of rational portfolio choices based on risk-return trade-offs and efficient diversification.
Investments held in these funds are companies that demonstrate high growth potential, usually accompanied by a lot of share price volatility. These funds are only for non risk-averse investors willing to accept a high risk-return trade-off.
to severe criticism (see e.g. Haugen and Baker 1991, Amenc, Goltz, and Le Sourd 2006, or Hsu 2006), pointing out that the mechanics of capitalization-weighting lead to trend-following strategies that provide an inefficient risk-return trade-off.
 See also: Share, Return, Portfolio, Index, Fund
  
|
RSS
