risk reversal

• A risk reversal is an options-based strategy that combines buying one option and selling another to hedge or express a directional view on…

Risk Premium

Key takeaways – A risk premium is the extra return an investor requires for taking on risk above a risk-free alternative (e.g., U.S. Treasury…

Risk Free Rate of Return

• The risk‑free rate is a theoretical baseline return an investor can earn with no financial loss; in practice, very short‑term, highly rated government…

Risk Control

Key takeaways – Risk control is a subset of enterprise risk management focused on reducing the likelihood and/or impact of identified threats through specific…

Risk Averse

• A risk‑averse investor prefers lower uncertainty and steadier returns even if it means accepting smaller gains. They prioritize capital preservation and liquidity. –…

Risk Adjusted Return on Capital (RAROC)

Overview / Key takeaways – RAROC (risk‑adjusted return on capital) is a profitability metric that adjusts an investment’s return for expected risk. It helps…

Ripple

• Ripple is a fintech company that builds blockchain-based payment infrastructure and uses the XRP Ledger and the token XRP to provide cross-border payments,…

Ricardian equivalence

• Ricardian equivalence is the proposition that the timing of government taxation—upfront taxes versus borrowing to pay later—does not change aggregate demand because rational…

Reverse Stock Splits

Key takeaways – A reverse stock split consolidates existing shares into fewer, higher-priced shares (for example, a 1-for-5 reverse split turns 5 shares into…

Revenue

Key takeaways – Revenue (often called sales or “top line”) is the total money a company earns from its business activities over a period…