risk versus reward

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Risk-Return Trade-Off

The concept that every rational investor, at a given level of risk, will accept only the largest expected return. That is, given two investments at the exact same level of risk, all other things being equal, every rational investor will invest in the one that offers the higher return. The risk-return tradeoff is pervasive throughout economics and finance. It is the reason that riskier bonds pay higher coupons than other bonds. It is also the reason that bonds pay lower returns than most stocks because they are a less risky investment. The Markowitz Portfolio Theory attempts to mathematically identify the portfolio with the highest return at each level of risk. See also: Markowitz Efficient Portfolio.

risk versus reward

A financial analysis comparing the potential gains from a project or property against the potential losses.The greater the risk,the greater the reward should be.

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No references found			In the absence of fear, market participants once again turn back to the standard for investment - measuring risk versus reward. Canadian Dollar Lets Fundamentals Lead the Way by Mena Report Dollar for dollar, the risk versus reward battle is won with a home, despite the potential to make bigger returns with smart investments in the stock market. Safe Investments for Good and Bad Financial Times by Elizabeth Williams / Finance and Investment community Sometimes this is a risk versus reward mentality where the benefits are seen to exceed the potential side effects. Providing a Positive Presentation in Online Business by Scott Lindsay / Business community			risk adjusted Risk Adjusted Return on Capital Risk Arbitrage Risk Aversion Risk Capital Risk Classes Risk controlled arbitrage Risk Factor Risk Graph Risk Hedge Risk Indexes Risk Lover risk management Risk Manager Risk Neutral risk of loss Risk Premium Risk Premium Approach Risk Profile Risk Ratio Risk Reversal Risk seeker Risk Taker Risk Tolerance Risk Transfer risk versus reward Risk-Adjusted Discount Rate Risk-Adjusted Performance Risk-adjusted profitability Risk-Adjusted Return Risk-Averse Risk-based capital ratio risk-based capital requirement Risk-Free Risk-Free Asset Risk-Free Interest Rate risk-free rate Risk-Free Rate of Return Risk-Free Return Risk-Loving Risk-Neutral Risk-Prone Risk-Return Trade-Off Risk-Return Tradeoff Risk-Reward Ratio Risk-Weighted Assets Riskless Arbitrage Riskless Investment Riskless or Risk-Free Asset Riskless Rate Riskless rate of return			Risk Seeking Risk Sensitive Foraging Theory Risk Sermayesi Yatirim Ortakligi Risk Service Contract Risk Sharing Financing Facility Risk Sharing Partner Risk Specific Concentration Risk Specific Dose risk stratification risk taker risk taker risk taker Risk Takers Risk Takers Risk Takers Risk Task Assessment Risk to benefit ratio Risk tolerance Risk tolerance Risk tolerance Risk tolerance Risk tolerance Risk tolerant Risk tolerant Risk Tool Suite for Advanced Design Risk transfer Risk Transfer Insurance Alliance, LLC Risk Transfer Process Risk Transfers Risk Treatment Plan risk versus reward Risk vs Reward Risk vs. Reward Risk vs. Reward Risk Weight Risk Weighted Asset Risk Weighted Assets Risk Weighted Capital-adequacy Ratio Risk Work In Progress Risk Your Life Risk Your Life Headquarters Risk, Hazard and Value Evaluation Risk, Intelligence and Analysis Team Risk, Prevention and Health Behavior Risk, Research and Liaison Team Risk, Systematic Risk, Unsystematic Risk-Adjusted Complication Index Risk-adjusted discount rate Risk-adjusted discount rate Risk-Adjusted Discount Rates Risk-Adjusted Fair Value Risk-Adjusted Monitoring of Outcomes Risk-Adjusted Mortality Index Risk-Adjusted Mortality Rate Risk-adjusted Net Present Value Risk-Adjusted Operative Mortality

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