Term of the Day: Risk-Return Tradeoff

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	INVESTOPEDIA Term Of The Day June 24, 2015 Risk-Return Tradeoff The principle that potential return rises with an increase in risk. Low levels of uncertainty (low-risk) are associated with low potential returns, whereas high levels of uncertainty (high-risk) are associated with high potential returns. According to the risk-return tradeoff, invested money can render higher profits only if it is subject to the possibility of being lost. Investopedia Explains: Because of the risk-return tradeoff, you must be aware of your personal risk tolerance when choosing investments for... Read More Related to "Risk-Return Tradeoff" Understanding Risk-Return Tradeoff The essence of risk-return tradeoff is embodied in the common phrase "no risk, no reward." Risk is usually defined as the chance an investment earns... Read More Why Local Knowledge Is the Key to Cross-Border Success Recent economic hard times in the United States have forced rising numbers of companies to look to overseas markets to... Read More Determining Risk And The Risk Pyramid You might be familiar with the risk-reward concept, which states that the higher the risk of a particular investment... Read More Recently Added Definitions Eurogroup Eurogroup is an informal, meeting of the finance ministers of European states that have adopted the Euro as... Read More The New Deal A series of domestic programs designed to help the United States economy from the Great Depression. The New Deal was launched in the early 1930s... Read More Related Definitions Risk Profile Risk Curve Casino Finance Equity Risk Premium Return Past Terms of the Day Delta-Gamma Hedging Modified Internal Rate Of Return - MIRR Equity Market Ordinary Shares Glide Path You are currently subscribed as: mondemand.forex@blogger.com Unsubscribe | Unsubscribe From All | Manage Profile Investopedia US, A Division of IAC. Copyright © 2015, Investopedia, LLC. All Rights Reserved Follow Us: