Friday 23 July 2010

Good and Poor Risk-Reward Ratios and their relationships to Expected Return



When the Risk-Reward Ratio is Good:
The Probability of Loss is Lower
The Expected Return is Higher

When the Risk-Reward Ratio is Poor:
The Probability of Loss is Higher
The Expected Return is Lower

http://www.centaur.co.za/investment_methodology/index.html

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