Risk off means investors want to avoid risk. Risk on means they are willing to take on more risk.
It seems like a sloppy phrase , but they know what it means, and who cares about the layman anyway (lol).
trade off between ris and profitability
The basic trade- off in the investment process is between the anticipated rate of return for a given investment instrument and its degree of risk.
The two key ideas of modern portfolio theory are diversification and the trade-off between risk and return. Diversification involves spreading investments across different assets to reduce risk, while the risk-return trade-off suggests that investors should seek an optimal balance between risk and potential return based on their risk tolerance.
Trade-off
trade-off means in exchange of one thing in return of another oportunity cost means the cost of alternative that must be forgone in order to pursue a certain action
additional risk is not taken unless there is an additional compensation or return is expected
For most products you can buy, there is a trade-off between quality and price.
For most products you can buy, there is a trade-off between quality and price.
The difference is that one is on and the other is off.
There is no difference between Contingent Liability and Off Balance Sheet Liability.
Enrique Crousillat has written: 'The trade-off/risk method' -- subject(s): Electric utilities, Planning, Risk
Yes, there is typically a negative correlation between risk and the return that investors demand. Generally, investors expect higher returns as compensation for taking on greater risk; conversely, lower-risk investments usually offer lower expected returns. This relationship is foundational in finance, illustrating the trade-off between risk and reward in investment decisions. However, individual preferences and market conditions can influence this correlation.