Trading TermsNon-Trend Day Contingency insurance (or difference in conditions) Daily Range Diversified Equity Funds Hook Day Deterministic System
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 Non-Trend Day in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Contingency insurance (or difference in conditions) in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Daily Range in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Diversified Equity Funds in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Hook Day in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Deterministic System in the context of stock market, trading, and investments.
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