Trading TermsPaying bank (or paying agent) Window Presentation Overfitting No-Load Uncovered Option
Reward-Risk Ratio
Let's take a look at a metric that is crucial in the world of finance - the monthly excess return to risk comparison. This is a ratio that measures the performance of a particular investment by dividing its alpha (the excess return above the market return) by its standard deviation (the measure of risk). A ratio higher than 0.4 is considered excellent, indicating strong returns with relatively low risk. So, when analyzing investments, keep an eye on this important ratio for a better understanding of their performance.
Related terms
Understand the meaning and definition of Paying bank (or paying agent) in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Window in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Presentation in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Overfitting in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of No-Load in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Uncovered Option in the context of stock market, trading, and investments.
MOREExplore other categories
4.4 Cr+DOWNLOADS
Enjoy Zero Brokerage On Stock Investments
Get the link to download the App
