Risk-Return Tradeoff Ratio

This paper constructed a new index: risk-return tradeoff ratio (RRTR), for portfolio selection, based on a premise that the reason of investors bearing the risks is to gain the super returns. The paper reviewed the history of risk & return measurements, analyzed their limitations, and advanced a more perfect measure: semi variance with capital factor. The paper made a lot of data calculations and theories exploring, and gave a demonstration of programming with 8 stocks basing on maximizing the portfolio RRTR.