risk-reward ratio - Hutchinson encyclopedia article about risk-reward ratio Printer Friendly
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risk-reward ratio

   Also found in: Financial 0.04 sec.

risk-reward ratio

Often imprecise analysis tool that measures the potential risks of a course of action against the potential rewards. It is imprecise if it is not possible to obtain comprehensive information about the potential risks and rewards. In the case of investment analysis the potential upside and possible risks to the company invested in cannot be quantified with any certainty.



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