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risk-reward ratio

   Also found in: Financial 0.01 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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Ranbaxy: Most of the risks are priced in the stock, so it is more likely to offer a good risk-reward ratio.
This is a tribute to the quality and transparency of Mumtalakat, an attractive risk-reward ratio for lenders, sovereign ownership of the company, as well as the fact that this was Mumtalakat's debut syndication transaction.
 
 
 
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