Jasmine
VIP Contributor
If you are investing, one of the most important things to consider is the risk-reward ratio. What exactly is risk-reward ratio? Well, the risk reward ratio is a method to measure the potential returns of an investment in relation to the risk level it posses. This is one of the most important factor involved in deciding your investment portfolio. You can calculate the risk-reward ratio by dividing the expected return of the assets you are investing from the amount of money you are supposed to risk in order to achieve that return. When the risk-reward ratio is higher, it indicates a more favorable investment opportunity.
