Dictionary

Reward-to-Risk ratio

  • Updated on
Reward-to-Risk ratio generally reflects the reward that an investor can earn for taking an additional unit of risk over the risk-free rate in the market. Reward-to-Risk ratio is an infamous measure to reckon the expected rate of returns by suggesting the amount of risk an investor must bear to earn the additional unit of profit.

Term of the day

Market Risk

What is a Market Risk? Market risk reflects the potential of reduction in the investment value due to the interplay of varying market forces in the direction t......
[ Read More ]
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK