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risk adjusted

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Financial Dictionary

risk adjusted

Of or relating to a variable, such as the return on an investment, that has been altered in order to account for the differences in risk among variables of the same type. For example, financial managers adjust expected returns on various investment projects for risk in order to make them comparable.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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