Saving, Managing Debt, and Budgeting

Risk / Reward

What is a “risk/reward ratio”?

A risk/reward ratio is defined by many as a comparison of the expected returns of an investment versus the amount that an investor could lose with the same investment. It is generally thought that the more return one expects to make, the higher the investment’s risk.


This is a web preview of the "The Handy Investing Answer Book" app. Many features only work on your mobile device. If you like what you see, we hope you will consider buying. Get the App