Oct 26, 2016 08:49
7 yrs ago
28 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!

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.
Peer comment(s):

agree AllegroTrans
1 hr
agree philgoddard
3 hrs
agree Yasutomo Kanazawa
4 hrs
neutral Tina Vonhof (X) : It's not up to the translator to ignore/change the meaning of a source word.
5 hrs
This is an EN/EN question, the asker wants an explanation of the term, not a translation.
neutral Daryo : a nuance: "... a higher risk investment should have a greater EXPECTED return" // as for the ACTUAL return - well, sometime $%!& happens - see the saga of the Icelandic banks from few years ago (2008–2011)...
7 hrs
Yes, good point.
agree acetran
23 hrs
Something went wrong...
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
Peer comment(s):

agree Tina Vonhof (X)
4 hrs
thank you
Something went wrong...
Term search
  • All of ProZ.com
  • Term search
  • Jobs
  • Forums
  • Multiple search