Risk Vs. Reward
Barron's Business Dictionary:
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Risk Vs. Reward
A financial concept that attempts to compare the potential fluctuations (especially the downside) with potential benefits to determine whether the proposed investment (or cost) is worthwhile.
| Risk Retention, Risk Premium, Risk Management | |
| Risk-Adjusted Discount Rate, Risk-Control Techniques, Risk-Financing Techniques |
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Risk Vs. Reward
Barron's Real Estate Dictionary:
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Risk Vs. Reward
A financial concept that attempts to compare the potential fluctuations (especially the downside) with potential benefits.
Example: An expected return of 2
percentage points above the Treasury bond rate was considered sufficient reward for investing in mortgage securities, where the historical default rate was 1%.
Example: An expected return of 2
percentage points above the Treasury bond rate was considered sufficient reward for investing in mortgage securities, where the historical default rate was 1%.
| Risk Analysis, Risk | |
| Risk-Based Capital Requirement, Risk-Free Rate |
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Barron's Business Dictionary
Dictionary of Business Terms. Copyright © 2007 by Barron's Educational Series, Inc. All rights reserved.
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