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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

risk adjusted return  

Definition 1.

A measure of how much an investment returned in relation to the amount of risk it took on. Often used to compare a high-risk, potentially high-return investment with a low-risk, lower-return investment.
 

Definition 2.

A measure of how much risk a fund or portfolio took on to earn its returns, usually expressed as a number or a rating.
 
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