Risk-reward ratio

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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.

Risk-Reward Ratio

The ratio of the standard deviation of an investment to its expected return. The higher the ratio is, the lower the return for the amount of risk one is taking. This can inform one's investment decisions. See also: Risk adjusted return on capital.
References in periodicals archive ?
On more than one occasion in the last couple of months the Blues boss has noted how diffi-cult his team find playing two matches in a week and he is torn between the risk-reward ratios of retaining continuity or introducing fresh legs.
Knowing price objectives, entry points, exit points, risk-reward ratios and which stop loss to use for every spread bet will help you to approach your mobile trading or iPhone spread betting ( http://www.
Westar is committed to maintaining the highest quality business standards while achieving optimum risk-reward ratios.
Our response to this competition has been to grant some modest price decreases when experience and exposure changes warranted this action, to shift out of lower-layer coverages which have been most affected by this competition to coverage carrying more appropriate risk-reward ratios, or to refuse to renew coverages where reduced rate levels do not provide us with an adequate return for the risks we are being asked to bear.