risk/reward ratio

Definition of "risk/reward ratio"
  1. The calculation of potential loss versus potential gain in a transaction or decision
How to use "risk/reward ratio" in a sentence
  1. The investor analyzed the risk/reward ratio before buying the stock.
  2. The business manager considered the risk/reward ratio while making changes to the marketing strategy.
  3. The risk/reward ratio was too high to warrant the investment.

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