RisikoRenditeVerhältnis
RisikoRenditeVerhältnis, often translated as risk-return ratio or risk-return tradeoff, is a fundamental concept in finance and investment. It describes the relationship between the amount of risk an investor is willing to take and the potential return they expect to achieve. Generally, higher potential returns are associated with higher levels of risk. Conversely, investments with lower risk typically offer lower expected returns. This principle suggests that there is no investment that offers high returns with no risk.
Investors must evaluate this ratio when making decisions about where to allocate their capital. For example,
Understanding the RisikoRenditeVerhältnis helps investors align their investment strategies with their personal financial goals, risk tolerance,