Glossary

A glossary is a dictionary of terms specific to a certain subject. A biology textbook might have a glossary in the back, so you can quickly look up all those technical words.

Reward-to-Risk ratio

Updated on 2023-08-29T11:55:59.891109Z

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.