Oct 26, 2016 08:49
7 yrs ago
29 viewers *
English term
reward
English
Bus/Financial
Finance (general)
Market prices reward higher risk with higher returns
https://quizlet.com/134391737/portfolio-management-flash-car...
Could someone help me to rephrase this sentence, specially the word reward, please? Thanks!
https://quizlet.com/134391737/portfolio-management-flash-car...
Could someone help me to rephrase this sentence, specially the word reward, please? Thanks!
Responses
4 +4 | trade off | Terry Richards |
4 +1 | recompense, pay, remunerate | airmailrpl |
Responses
+4
18 mins
Selected
trade off
Actually, reward is not a good word here because some times the market punishes high risk with low returns (or even no return at all).
All the sentence is saying is that a higher risk investment should have a greater return.
If somebody asks you to bet $10 on the roll of a dice and they will pay you $20 if you roll a six, you probably wouldn't take the bet - the chance of losing your $10 is 5 times higher than your chance of winning $20.
If, however, they offer you a thousand dollars if you roll a six, you might go for it. The chances of you winning are still the same but the reward is much higher.
All the sentence is saying is that a higher risk investment should have a greater return.
If somebody asks you to bet $10 on the roll of a dice and they will pay you $20 if you roll a six, you probably wouldn't take the bet - the chance of losing your $10 is 5 times higher than your chance of winning $20.
If, however, they offer you a thousand dollars if you roll a six, you might go for it. The chances of you winning are still the same but the reward is much higher.
4 KudoZ points awarded for this answer.
Comment: "Selected automatically based on peer agreement."
+1
1 hr
recompense, pay, remunerate
reward => recompense, pay, remunerate
verb
verb: reward; 3rd person present: rewards; past tense: rewarded; past participle: rewarded; gerund or present participle: rewarding
1.
make a gift of something to (someone) in recognition of their services, efforts, or achievements.
"the engineer who supervised the work was rewarded with a bonus"
synonyms: recompense, pay, remunerate, make something worth someone's while; give an award
verb
verb: reward; 3rd person present: rewards; past tense: rewarded; past participle: rewarded; gerund or present participle: rewarding
1.
make a gift of something to (someone) in recognition of their services, efforts, or achievements.
"the engineer who supervised the work was rewarded with a bonus"
synonyms: recompense, pay, remunerate, make something worth someone's while; give an award
Peer comment(s):
agree |
Tina Vonhof (X)
4 hrs
|
thank you
|
Something went wrong...