reward

English translation: trade off

08:49 Oct 26, 2016
English language (monolingual) [PRO]
Bus/Financial - Finance (general)
English term or phrase: reward
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!
Ivan Niu
China
Local time: 01:03
Selected answer:trade off
Explanation:
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.
Selected response from:

Terry Richards
France
Local time: 19:03
Grading comment
Selected automatically based on peer agreement.
4 KudoZ points were awarded for this answer



SUMMARY OF ALL EXPLANATIONS PROVIDED
4 +4trade off
Terry Richards
4 +1recompense, pay, remunerate
airmailrpl


  

Answers


18 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): +4
trade off


Explanation:
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.

Terry Richards
France
Local time: 19:03
Native speaker of: Native in EnglishEnglish
PRO pts in category: 4
Grading comment
Selected automatically based on peer agreement.

Peer comments on this answer (and responses from the answerer)
agree  AllegroTrans
1 hr

agree  philgoddard
3 hrs

agree  Yasutomo Kanazawa
4 hrs

neutral  Tina Vonhof: 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
Login to enter a peer comment (or grade)

1 hr   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): +1
recompense, pay, remunerate


Explanation:
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

airmailrpl
Brazil
Local time: 14:03
Native speaker of: Native in EnglishEnglish, Native in PortuguesePortuguese
PRO pts in category: 28

Peer comments on this answer (and responses from the answerer)
agree  Tina Vonhof
4 hrs
  -> thank you
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