Related Words

R: The intrinsic rate of increase of a population

Risk-Return Trade-Off: The basic concept that higher expected returns accompany greater risk, and vice versa.

Risk-Reward Ratio: Relationship of substantial reward corresponding to the amount of risk taken; mathematically represented by dividing the expected return by the standard deviation.

Risk-Prone: Willing to pay money to assume risk from others.

Risk-Neutral: Insensitive to risk.

Riskless Transaction: A transaction that is guaranteed a profit, such as the arbitrage of a temporary differential between commodity prices in two different markets. The evaluation of whether dealer markups and m . . . View Full Definition

Risky Asset: An asset whose future return is uncertain.

Road Show: A promotional presentation by an issuer of securities to potential buyers about the desirable qualities of the investments.

Roll Up: To move to an option position with a higher exercise price. In venture capital, refers to the venture capitalist forcing small firms to merge operations in order to reduce costs

Roll Order: (1) Dividend roll; (2) Replacement of a maturing position with an identical one in the new maturity; (3) Recognizition of capital gain or loss while reestablishing the position at the risk o . . . View Full Definition