Risk/Reward Ratio Excel Template

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A decision to invest $400,000. He is willing to take 10-15% of the risk on a short-term investment. He shortlisted two stocks
they are either Microsoft Corporation at the current price of $172 per share or Apple Inc. at the current price of $320 per sh
both stock trends and realized that Microsoft Corp. share price can go up to $225 per share and Apple Inc. share price can go
in a period of 3 months. Since it is a stock market investment it involves the risk of share price goes down instead of up.
He is ready to take risks up to $48000.

Current Price Stop Loss Target

Apple Inc. 320 285 400
Microsoft Corp 172 153 225

Risk is calculated as

Apple Inc. Microsoft Corp

Risk 11 11

Reward is calculated as

Apple Inc. Microsoft Corp

Reward 25 31

Risk/Reward Ratio is calculated using the formula given below

Risk to Reward Ratio = Risk / Reward

Apple Inc. Microsoft Corp

Risk/Reward Ratio 0.44 0.36
nt. He shortlisted two stocks one of which he prefers to invest,
current price of $320 per share. Mr. A study and analyzed
Apple Inc. share price can go up to $400 per share
goes down instead of up.