A
 TRADING TOOLS
Dictionary
Risk Adjusted Return
Risk Adjusted Return
Image 1 A measure of how much risk a fund or portfolio assumed to earn its returns. This is usually expressed as a number or a rating.

Image 2 The more return per unit of risk, the better.

Often represented by the Sharpe Ratio.


Return

Risk

Risk Adverse

Risk/Return Tradeoff

Sharpe Ratio