risk-reward
Upside versus downside
Risk-reward describes the relationship between potential loss and potential gain in a decision.
The term appears most often in investing and gambling, where higher potential returns typically require accepting greater risk of loss: The risk-reward on that stock isn't favorable.
More broadly, it frames any choice involving trade-offs between safety and opportunity: She weighed the risk-reward of leaving her stable job for a startup.
Likelihood expressed numerically
- stakesPosts or wagers
- betRisked stake on outcome
- wagerStake on uncertainty
- payoutMoney distributed to recipient
jackpot · house edge · all-in · bluff · ante · pot odds · double down · high roller
Collected works or assets
- returnGo back again
- diversificationExpanding into varied areas
- asset allocationDistributing investments strategically
- yieldProduce or relinquish
volatility · capital gains · equities · hedge · upside · downside · speculation · blue-chip
Process of choosing actions
- loss aversionSetbacks sting more than gains please
- utilityFunctional worth or purpose
- cognitive biasSystematic deviation from rationality
- uncertaintyState of being unsure
ambiguity · threshold · motivation · dopamine · thrill · impulsivity · delayed gratification · cost-benefit
Risky new undertaking
- startupNew business enterprise
- ROIProfit-to-cost ratio
- entrepreneurOne who starts businesses
- opportunity costSacrificed alternative's worth
market entry · pivot · scalability · disruption · capital investment · profit margin · growth potential · competitive advantage
odds
Likelihood expressed numerically
payout · jackpot · house edge · all-in · bluff · ante · pot odds · double down · high roller · longshot
portfolio
Collected works or assets
- returnGo back again
- diversificationExpanding into varied areas
- asset allocationDistributing investments strategically
yield · volatility · capital gains · equities · hedge · upside · downside · speculation · blue-chip · growth stocks
decision-making
Process of choosing actions
- loss aversionSetbacks sting more than gains please
- utilityFunctional worth or purpose
- cognitive biasSystematic deviation from rationality
uncertainty · ambiguity · threshold · motivation · dopamine · thrill · impulsivity · delayed gratification · cost-benefit · trade-off
venture
Risky new undertaking
- startupNew business enterprise
- ROIProfit-to-cost ratio
- entrepreneurOne who starts businesses
opportunity cost · market entry · pivot · scalability · disruption · capital investment · profit margin · growth potential · competitive advantage · burn rate
strategy
Planned approach to goals
- conservativeCautious about altering customs
- Hail MaryCatholic Marian invocation
- gambitRisky opening for advantage
tactical · momentum · audible · counterattack · pressing · defensive · offensive · matchup · analytics · clutch
- strategic choicesprisoners dilemma, chicken game, zero-sum game, tradeoff, gambit
- double-edged swordsmixed blessing, trade-off, Catch-22, bittersweet, pros and cons
- tradeoffstradeoff, compromise, cost-benefit, give-and-take, quid pro quo
- comparative analysiscontrast, comparison, benchmark, ranking, rating
- roguelikespermadeath, procedural generation, runs, roguelite, restart loop
risk-rewardsure thing
Guaranteed outcome or agreement
certainty · safe bet · riskless · no-brainer · sure bet
risk-rewardcapital preservation
Safeguarding original investment value
risk-free · safe haven · risk-averse · playing it safe · stability
risk, reward, risks, risked, risking, risky, riskier, riskiest, riskiness