A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

R

Redemption charge

fee charged upon a voluntary redemption from an investment fund.

Relative return

Refers to the return of an investment relative to some benchmark

Relative value

Relative Value strategies generate profits by capturing the spread between two closely related securities. For example, an investor can buy a relatively undervalued off-the-run U.S. Treasury Bills and simultaneously short a relatively overvalued on-the-run U.S. Treasury Bills with the same duration.

Rate of Return

The percentage gain or loss of a security over a particular period.

Risk arbitrage

See Merger arbitrage

Risk premium

In the equity market it is the reward for holding a market security rather than a risk-free asset. In the fixed income market it is the difference between Treasury and non-Treasury bonds of comparable maturity.