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Risk return trade off |
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Risk return trade offThe tendency for potential risk to vary directly with potential return, so that the more risk involved, the greater the potential return, and vice versa.Risk return trade off Similar MatchesReal returnReal returnThe actual payback on an investment after removing the effect of inflation. Diminishing returnsDiminishing returnsThe fall in the marginal product of a factor or factors that eventually occurs as input of that factor rises, holding the input of at least one other factor fixed, according to the Law of Diminishing Returns. Maximum expected return criterion (MERC)Maximum expected return criterion (MERC)Standard that one choose the asset with the highest anticipated return. Law of Diminishing ReturnsLaw of Diminishing ReturnsThe principle that, in any production function, as the input of one factor rises holding other factors fixed, the marginal product of that factor must eventually decline. Rate of returnRate of returnCalculated as the (value now minus value at time of purchase) divided by value at time of purchase. For equities, we often include dividends with the value now. See also: Return, annual rate of return. Further SuggestionsSafety net returnIncreasing And Diminishing Returns Subperiod return return on investment Constant returns to scale Total return for calendar year Maximum return criterion (MRC) total return Dividend Discount Return Horizon return Required return Average accounting return Joint tax return Market return Separate tax returns Cumulative total return Total dollar return return on equity Expost average rate of return Inheritance tax return Incremental internal rate of return Decreasing returns to scale Return on equity (ROE) Increasing returns to scale Return of capital |
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