Explore 3 Stock Ideas & Industry Insights Download Free Report

Finance Dictionary

Reward-to-Risk ratio

Definition
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.

We use cookies to help us improve, promote, and protect our services. By continuing to use this site, we assume you consent to our Cookies Policy. For more information, read our Privacy Policy and Terms and Conditions