Meaning RISK-ADJUSTED RETURN: Often we subtract from the rate of return on an asset a rate of return from another asset that has similar risk. This gives an abnormal rate of return that shows how the asset performed over and above a benchmark asset with the same risk. We can also use the beta against the benchmark to calculate an alpha, which is also risk-adjusted performance
More terms such as Risk-adjusted return in Dictionary R.
- Definition Roth IRA:
- Examples Individual Retirement Account that allows contributors to invest up to $2,000 per year, and to withdraw the principal and earnings totally tax-free under certain conditions risk-adjusted return definition.
- Definition Return On Equity (ROE):
- Examples profitability. Determined by dividing net income for the past 12 months by common stockholder equity (adjusted for stock splits). Result is shown as a percentage. Investors use ROE as a measure of risk-adjusted return explain.
- Definition Royalty:
- Examples Payment for the right to use intellectual property or natural resources risk-adjusted return what is.
- Definition Reclamation:
- Examples right to return or the right to demand the return of a security that has been previously accepted as a result of bad delivery or other irregularities in the delivery and settlement process risk-adjusted return meaning.
- Definition Rocket Scientist:
- Examples An employee of an investment firm (often having a Ph.D. in physics or mathematics) that works on highly mathematic models of derivative pricing risk-adjusted return abbreviation.
