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→Risk/reward ratio
In many cases, market strategists find the ideal risk/reward ratio for their investments to be approximately 1:3, or three units of expected return for every one unit of additional risk. Investors can manage risk/reward more directly through the use of stop-loss orders and derivatives such as [https://www.investopedia.com/terms/p/putoption.asp put options].<ref>[https://www.investopedia.com/terms/r/riskrewardratio.asp#:~:text=The%20risk%2Freward%20ratio%20is,anything%20greater%20than%201%3A3. Risk/Reward Ratio: What It Is, How Stock Investors Use It], Investopedia</ref>}}
In many cases, market strategists find the ideal risk/reward ratio for their investments to be approximately 1:3, or three units of expected return for every one unit of additional risk. Investors can manage risk/reward more directly through the use of stop-loss orders and derivatives such as [https://www.investopedia.com/terms/p/putoption.asp put options].<ref>[https://www.investopedia.com/terms/r/riskrewardratio.asp#:~:text=The%20risk%2Freward%20ratio%20is,anything%20greater%20than%201%3A3. Risk/Reward Ratio: What It Is, How Stock Investors Use It], Investopedia</ref>}}
=== Articles on risk/reward ration for investment ===
*[https://www.extension.iastate.edu/agdm/wholefarm/html/c5-214.html Creating a Return/Risk Profile for an Equity Investment], Iowa State University
== Taking risk in business and entrepreneurship ==
== Taking risk in business and entrepreneurship ==