Trending November 2023 # Example Of Risk/Reward Ratio (With Excel Template) # Suggested December 2023 # Top 13 Popular

You are reading the article Example Of Risk/Reward Ratio (With Excel Template) updated in November 2023 on the website Moimoishop.com. We hope that the information we have shared is helpful to you. If you find the content interesting and meaningful, please share it with your friends and continue to follow and support us for the latest updates. Suggested December 2023 Example Of Risk/Reward Ratio (With Excel Template)

Definition of Risk/Reward Ratio

The Risk/Reward Ratio is measured by the trader/investor for the level of risk taken on investment against the level of income and growth achieved on investment. The ratio measures probability and level of profit against probability and level of loss taken by the investor.

Start Your Free Investment Banking Course

Every trader/investor, according to his /her risk appetite, generally decides the Risk/Reward ratio. In general high-risk results in high rewards, but there is an investment option where this statement is not true. This ratio helps the investor to make the decision of investment from investment options depending on the level of returns against the level of risk involved in case investment does not move in the expected direction.

Formula

Risk to Reward Ratio = Risk / Reward

In general, the lower ratio is better than the investment.

Example of Risk/Reward Ratio (With Excel Template)

Let’s take an example to understand the calculation in a better manner.

You can download this Risk/Reward Ratio Excel Template here – Risk/Reward Ratio Excel Template

Example #1

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 one of which he prefers to invest. They are either Microsoft Corporation at the current price of $172 per share or Apple Inc. at the current price of $320 per share. Mr. A study and analyzed both stock trends and realized that Microsoft Corp. share price can go up to $225 per share and Apple Inc. share price can go up to $400 per share 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.

Solution:

Risk is calculated as

Risk/Reward Ratio is calculated using the formula given below

Risk to Reward Ratio = Risk / Reward

For Apple Inc.

Risk/Reward Ratio =$35 / $ 80

Risk/Reward Ratio = 0.44

Risk/Reward Ratio = $19 / $53

Risk/Reward Ratio = 0.36

Above, calculation, suggests Microsoft is the better investment as per the Risk/Reward ratio. However, it is up to Mr. A to decide which investment he prefers or he may choose to invest in both companies by dividing his investment.

Difference between Risk and Reward

Basis of Comparison

Risk

Reward

Definition Risk is the probability and level of loss of investment taken by the investor. The reward is returns or growth earned on investment by the investor during period

Source Risk is a result of the category of asset, investment and trading strategy, Economic conditions affecting investment. The reward is a result of Interest, dividend, increase in the underlying value of the investment.

Types

Systematic Risk: Risk, which cannot be avoided, affect almost all market investments. E.g. interest rate, exchange rate, inflation, political.

Unsystematic Risk: Specific type of risk affecting a particular investment or industry. E.g., management change, competition, performance.

Growth: The price of asset increases resulting in the growth of the underlying value of the investment.

Income: Reward earned through interest, dividend on investment.

Managing There are 4 way to handle risk

Avoid: After considering the level of risk avoid investment.

Reduce: Change in trading/investment strategy, hedging, Diversifying investment, cutting off loss-making investment.

Transfer: Transfer of risk can be done through insurance by paying the premium.

Accept: Understanding and accepting risk for better rewards.

Rewards are managed by

Reinvestment: Income earned by selling an investment or through dividend and interest can be reinvested in different asset categories.

Expand: in business, expansion is a way to invest in the business for expansion and more profit.

Diversification: Portfolio upgraded and managed by diversifying investment in various categories.

Example Mr. Rock decides to invest in stock A at the current price of $100 he expects the price of the stock can rise up to $120 in 1 month while he decides he should not make the loss of more than $10 in this stock. $10 is a risk taken by Mr. Rock in this investment in case stock moves down. Mr. Rock decides to invest in stock A at the current price of $100 he expects the price of a stock can rise up to $120 in 1 month while he decides he should not make the loss of more than $10 in this stock. Stock price moves up to $120 in a month this earning of $20 on $100 investment is the reward.

Below we will learn about the benefits and limitation for the same:

Advantages

Risk appetite: Every individual has a different risk level of risk capacity. Risk/Reward ratio helps them to make selection and decision from various investment option according to capacity and expected returns.

Investment Decision: Risk/reward ratio help investor to make investment decision from various investment options like mutual funds, stocks, hedge funds, etc.

Risk-returns estimates: Even if investment provides returns it is important to calculate whether returns earned on investment are worth in comparison with the risk taken. If returns are not as expected compare to risk, an investor can decide whether an investment is worth or not. For e.g. Investor can decide to make an investment in bonds, debentures, fixed deposits that have less risk but will also generate less return on investment, or other options likes the stock, mutual funds which can generate high returns but includes the risk of loss. Investment decision depends on an investor’s expectation and risk capacity.

Risk Management: Risk can be managed by four ways i.e. avoid, reduce, transfer and accept. With the help of risk to reward ratio investors can manage their portfolio to maximize returns and minimize risk level through various options. Trader trading in various financial instruments can limit his loss with stop-loss by using risk to reward ratio.

Not completely accurate: Risk/Reward ratio is not always accurate; the investor has to make the decision based on risk capacity and on certain assumptions on price movement. Technical and fundamental analysis help in making better analysis of stock understand risk/reward ratio but they are not completely accurate, and still include assumptions.

Not Certainty of movement: Risk to reward ratio based on an assumption of certain movement but in reality in the market financial instrument does not necessarily move in expected or opposite direction. Many time if the stock remains stagnant, which will turn the investment into a dead investment without either profit or loss.

Conclusions – Risk/Reward Ratio

Risk/Reward ratio is an important tool for trader/investor to understand the level of risk involved in investment decisions compared to returns. Lower the risk/reward ratio i.e. below 1 is considered as good ratio since the return on investment outweighs the risk. In general, short-term investors and traders use this ratio to select from a variety of categories of investments. In case the price does not move in the expected direction this ratio, helps them to limit their losses.

How To Create Excel Template?

Create Templates in Excel

We have different types and categories of templates available in Excel, which can access from the File menu ribbon’s New section. This has different types of Templates such as Business, Calendar, Budget, Planner, Financial Management, etc. To create customized templates other than these, we can use Data Validation for drop-down, Table, and Images and give them proper header names. We can also insert a logo for our template. To standardize the template, always fix the theme or template, and visuals should see the purpose of creation. In this article, we will learn about Create Templates in Excel.

Start Your Free Excel Course

Excel functions, formula, charts, formatting creating excel dashboard & others

How to create Templates?

Templates can be made by saving an Excel file with a specialized extension and then saving the file in a specified directory.

What type of content can be stored as a Template?

Text data can be stored as a template. Various document sections, such as page titles, column and row labels, text, section headings, and any cell in Excel containing text or numbers, or any kind of data, can all be included in a template. We can also include any graphical shapes, logos of companies, or any background image and even Excel formulae.

The type of text formatting, such as font, color, or size, can be saved along with the data as a template. Formats of cells or worksheets, such as column width or background fill color or alignment of text and even formats of numbers and dates, and several sheets can be saved in templates.

All hidden and protected areas, such as locked cells that cannot be altered and hidden columns and rows, or even worksheets that may contain data not meant for general view.

All Macros are specially customized toolbars that may contain frequently used options; macros and the quick access toolbar can be saved as templates.

How to Create Templates in Excel?

To create a template in recent versions of Excel, very little work must be done.

Excel 2013 & later versions – Before saving a file as a template, one has to define the custom template directory.

Go to File.

Select the option Save in the menu ribbon.

Find the option Default personal templates location among the various options.

Choose a directory where you want to save all the templates. DocumentsCustom Office Templates is regarded as a good choice.

Firstly, go to the File.

Now, the option to provide a name to your template file appears.

Here we see that in the drop-down menu, there is an option called Excel Template (*.xltx)

Note: It is better to choose “Excel Macro-Enabled Template” (.xltm) for cases where the workbook might contain macros. “Excel 97-2003 Template” (.xlt) is to be chosen for the cases where the version of the Excel workbook is very old. “Excel Template” (.xltx) should be chosen for all other cases.

Examples to Create Templates in Excel

Below are some examples to create templates in Excel.

Example #1

First, we will make all the changes in a new file and modify it until all the items you wish to save in the template are ready. Then you have to save the file as a template. Template files have a special extension.

In the screenshot above, we have added an image and text as the template’s structure. Now we shall follow the steps below to create the Excel template.

Step 1 – Firstly, go to File.

Now, the option to provide a name to your template file appears.

Step 3 – Here, we see that in the drop-down menu, select Excel Template (*.xltx)

Now, automatically, Excel will place this template file in the appropriate directory. And new Excel documents can be created based on this template file by navigating and choosing “Personal” in the new file window (right next to Featured) and then choosing the appropriate template.

Concepts always become much clearer when we have more examples. So, let us look at yet another example of creating Excel Templates.

Example #2

Let us explore how to save a Macro-Enabled Excel template through an example. Suppose we have an Excel with some macros(s) to be used as a base for other files; then we need to save this Excel as a macro-enabled Excel template.

In the screenshots above, we added a macro in the template file, and now we shall create the template in Excel.

Now, the option to provide a name to your template file appears.

Here we see that in the drop-down menu, there is an option called Excel Macro-Enabled Template (*.xltm)

Now, automatically, Excel will place this template file in the appropriate directory. And new Excel documents can be created based on this template file by navigating.

Firstly, go to File.

Choose Personal in the new file window (next to Featured) and then choose Template 2.

Example #3

Now, let us look at another example. Firstly, we will make all the changes in the new file and modify it until all the items you wish to save in the template are ready. Then you have to save the file as a template. Template files have a special extension.

We have added an image and text as the template’s structure in the above screenshot. Now we shall follow the steps below to create the Excel template.

Now, the option to provide a name to your template file appears.

Step 2 – Here, we see that in the drop-down menu, select Excel Template (*.xltx)

Example #4

Now, let us look at yet another example. Now, we will make all the changes in a new file and modify it until all the items you wish to save in the template are ready. Then you have to save the file as a template. Template files have a special extension.

In the screenshot above, as you can see, we have added the template structure – we have added a world map, increased the default worksheets, and renamed them, and now we shall proceed to save this file as a template.

Now we shall follow the steps below to create the Excel template.

Now, the option to provide a name to your template file appears.

Step 2 – Here, from the drop-down menu, select Excel 97-2003 Template (*.xlt)

Example #5

Now we shall use a template file to create a new file in Excel. We will make use of the Example #4 template file.

Firstly, go to File.

Choose “Personal” in the new file window (next to Featured) and choose the appropriate template.

We shall choose Template 4 as the base and create a new file in Excel.

As we can see, all the template structures are retained, and the new file is named Template4 1 – the first file based on Template 4.

Example #6

Now we shall use another template file to create a new file in Excel. We will make use of the Example #3 template file.

We shall choose Template 3 as the base and create a new file in Excel.

Hence, we can see that the image and the header structure are retained in the new file. And it is also important to note that this new file is named Template 3 1 – signifying that it is the first file based on Template 3.

Example #7

Now we shall create another new template. We will create the template structure in Excel, as shown below.

Now we shall follow the steps below to create the Excel template.

Now, the option to provide a name to your template file appears.

Step 2 – Here, from the drop-down menu, select Excel Template (*.xltx)

This will create a Template 7 template with the template structure defined in the Default Template location in Excel.

Example #8

Now we shall attempt to use Template 7 to create another file in Excel.

Now, automatically, Excel will place this file in the appropriate directory.

Example #9

Let us see an example where we have Excel formulae in the Template file.

As we can see above, we have created a Template structure with the formula for Net Profit Margin defined as:

Net Profit Margin = (Net Profit/Total Revenue)*100

Since this is the template, no data is present here. Let us see how to create the template file in Excel.

Now we shall follow the steps below to create the Excel template.

Now, the option to provide a name to your template file appears.

Step 2 – Here, from the drop-down menu, select Excel Template (*.xltx)

This will create a Template 9. xltx template with the template structure defined in the Default Template location.

Example #10

Now, we shall attempt to use the previous example template to create a new file and see if that works in Excel.

We see that in the new file, we have the structure defined, and once we feed in the data on Columns A, B, and C, the Net Profit Margin in Column D is automatically calculated using the Template File formula.

Example #11

Let us now use our second example – Template 2 to create a new file in Excel. Template2 has a defined macro, so let us see if the same is available in the new file.

Now let us see what happens when we select “Template2”.

It opens up a new file with the same macro (that was defined in the template file) loaded automatically.

We will get the desired result.

Things to Remember

For versions of Excel 2013 and later, it is possible to change Excel’s default template for a workbook by saving the template at the appropriate location. All default templates must have a specific name – chúng tôi or chúng tôi and must be saved in Excel’s startup directory. C:Users%username%AppDataRoamingMicrosoftExcelXLSTART

The template has to be named xltx or Sheet to modify the template to add new sheets in existing files. xltm and must be saved in the same folder.

How To Calculate Age In Excel Using Formulas + Free Calculator Template

Watch Video – How to Calculate Age in Excel (in Years, Months, and Days)

Using a combination of Excel functions and the date of birth, you can easily calculate age in Excel. You can either calculate the age till the current date or between the specified period of time.

The technique shown here can also be used in other situations such as calculating the duration of a project or the tenure of the service.

In this tutorial, you’ll learn how to calculate age in Excel in:

The number of years elapsed till the specified date.

The number of Years, Months, and Days elapsed till the specified date.

You can also download the Excel Age Calculator Template.

Suppose you have the date of birth in cell B1, and you want to calculate how many years have elapsed since that date, here is the formula that’ll give you the result:

=DATEDIF(B1,TODAY(),"Y")

If you have the current date (or the end date) in a cell, you can use the reference instead of the TODAY function. For example, if you have the current date in cell B2, you can use the formula:

=DATEDIF(B1,B2,"Y")

DATEDIF function is provided for the compatibility with Lotus 1-2-3.

One of the things that you’ll notice when you use this function is that there is no IntelliSense available for this function. No tooltip appears when you use this function.

This means that while you can use this function in Excel, you need to know the syntax and how many arguments this function takes.

If you’re interested in knowing more about DATEDIF function, read the content of the box below. If not, you can skip this and move to the next section.

Syntax of DATEDIF function:

=DATEDIF(start_date, end_date, unit)

It takes 3 arguments:

start_date: It’s a date that represents the starting date value of the period. It can be entered as text strings in double-quotes, as serial numbers, or as a result of some other function, such as DATE().

end_date: It’s a date that represents the end date value of the period. It can be entered as text strings in double-quotes, as serial numbers, or as a result of some other function, such as DATE().

unit: This would determine what type of result you get from this function. There are six different output that you can get from the DATEDIF function, based on what unit you use. Here are the units that you can use:

“Y” – returns the number of completed years in the specified time period.

“M” – returns the number of completed months in the specified time period.

“D” – returns the number of completed days in the specified period.

“MD” – returns the number of days in the period, but doesn’t count the ones in the Years and Months that have been completed.

“YM” – returns the number of months in the period, but doesn’t count the ones in the years that have been completed.

“YD” – returns the number of days in the period, but doesn’t count the ones in the years that have been completed.

You can also use the YEARFRAC function to calculate the age in Excel (in years) in the specified date range.

Here is the formula:

=INT(YEARFRAC(B1,TODAY()))

The YEARFRAC function returns the number of years between the two specified dates and then the INT function returns only the integer part of the value.

NOTE: It’s a good practice to use the DATE function to get the date value. It avoids any erroneous results that may occur when entering the date as text or any other format (which is not an acceptable date format).

Also read: How To Calculate Time In Excel

Suppose you have the date of birth in cell A1, here are the formulas:

To get the year value:

=DATEDIF(B1,TODAY(),"Y")

To get the month value:

=DATEDIF(B1,TODAY(),"YM")

To get the day value:

=DATEDIF(B1,TODAY(),"MD")

Now that you know how to calculate the years, months and days, you can combine these three to get a text that says 26 Years, 2 Months, and 13 Days. Here is the formula that will get this done:

=DATEDIF(B1,TODAY(),"Y")&" Years "&DATEDIF(B1,TODAY(),"YM")&" Months "&DATEDIF(B1,TODAY(),"MD")&" Days"

Note that the TODAY function is volatile and its value would change every day whenever you open the workbook or there is a change in it. If you want to keep the result as is, convert the formula result to a static value.

Excel Functions Used:

Here is a list of functions used in this tutorial:

DATEDIF() – This function calculates the number of days, months, and years between two specified dates.

TODAY() – It gives the current date value.

YEARFRAC() – It takes the start date and the end date and gives you the number of years that have passed between the two dates. For example, if someone’s date of birth is 01-01-1990, and the current date is 15-06-2023, the formula would return 26.455. Here the integer part represents the number of years completed, and the decimal part represents additional days that have passed after 26 years.

DATE() – It returns the date value when you specify the Year, Month, and Day value arguments.

INT() – This returns the integer part of a value.

You May Also Like the Following Excel Tutorials:

Types And Example With Advantages

Definition of Disposable Income

Download Corporate Valuation, Investment Banking, Accounting, CFA Calculator & others

Types of Disposable Income

Given below are different types:

1. National

This is the sum of income of all citizens and institutions of the Nation. It is derived from overall national income and measures the cash or Income available with the nation for final consumption and saving. National Disposable Income can be gross or net.

2. Personal

Personal type refers to that part of the personal income of an individual available for the use or disposal of a household. So, it is the actual amount available to individual households and non-corporate businesses after paying all government tax obligations.

Disposable Formula

Disposable Income = Gross Annual Income – Direct taxes

Net National Disposable Income = NNP(Factor Cost)+Net Indirect Taxes+Net current transfer from the rest of the world

Gross National Disposable Income = Net National Disposable Income+ Depreciation

Examples of Disposable Income

Given below are the examples mentioned:

1. A family from United Nations has an annual household income of $85,000, paying 15% tax annually, so what is the family’s disposable income?

So 15% of $85,000 is $12,750 (Annual taxes paid to family)

Disposable Income = $85,000 – $12,750 = $72,250

Robert Annual Income = $90,000

Tax expenses and Payroll Deduction = $15,000

DPI = Annual Income – Taxes and Other Payroll Deductions

= ($90,000 – $15,000)

DPI = $75,000

So Robert’s Net Income is $75,000, and the new home has a retail price of $45,000 and a loan payment of $10,000, which is approximately 13% of Robert’s DPI. So depending on Robert’s other expenses, it seems reasonable to buy a new home.

Excel Application Snapshot.

Advantages

This impacts the stock market, and if the company’s income increases, it increases the stock valuation, and due to this overall value of the stock market increases.

If an individual income increases, in that case, the household has more money either to save or spend, and indirectly, consumption also increases.

The higher DPI allows them to buy luxury goods.

If it increases, it is a good sign for small businesses as customers have more money to buy goods and services.

A nation uses this to calculate the overall Nation’s net disposable and Gross Disposable income.

Lastly, it is an important economic indicator for the nations to maintain the economy’s health when needed.

If it decreases, in that case, households have less amount in hand to spend and save.

If consumption decreases, it decreases corporate sales and earnings, and the individual stock’s value also decreases.

Direct taxes impact DPI. If it increases, it reduces an individual’s purchasing power.

It depends on real disposable, employment, job security, household wealth, expectations and sentiment, and market factors.

Taxes play an important role in disposable depending on the increase and decrease of taxes by the government of different nations.

Maintaining disposable income nations at the desired level is the government’s job. If it fails to do so, consumers will have less money to spend on goods and services, and the economy will impact due to these counties.

Important Points

If disposable decreases, the household has less money to spend and save.

If Disposable increases, households will have more money to spend and save, and consumption will increase.

This fluctuates as taxes and tax rates differ from country to country.

When income changes, it changes the consumption level of goods and services, called induced consumption, and varies with income.

Conclusion

So from the above description, it is clear that disposable income is the amount available to individuals’ households after paying all government taxation. Different government agencies monitor citizens of the country for economic purposes and the economy’s health. Nations continuously make efforts to increase or maintain disposable at a certain level as it is an important economic indicator for the nations. It has been observed that if the country’s National Income is higher, then income is also higher. It mainly depends on taxes, and it fluctuates as taxes fluctuate. Personal disposable income is an important indicator of the nation’s economy and determines the individual’s ability to consume goods and services.

This amount is important for a household to spend on daily necessities. Personal income in the United States in January 2023 was 15913.40 USD billion, which increased to 15944.70 USD billion in February 2023. Personal Disposable Income averaged 5273.04 USD Billion in the United States from 1959 to 2023.

Strategies And Tactics Of Risk Management

Following a robust and well−planned risk management strategy has become more important now than ever. Especially after the COVID pandemic, organizations have been focusing on risk management for all projects. Whether they are developing a simple mobile app or are planning a business expansion in the international market, risk management is essential.

The project planning is incomplete without identifying the potential risks that might arise from deploying new strategies. How quickly and effectively you plan risk management will determine how well you can cope with the unforeseen and how your business performs in tough times. Risk management can involve strategies to mitigate these risks or a detailed backup plan in case the existing strategy fails. Keep reading to learn more about risk management.

A risk management strategy is a set of procedures and plans to address different kinds of risks. Businesses of all sizes and natures can benefit from a risk management strategy. Note that a risk management strategy isn’t just a series of steps, but an ongoing process where you identify the risks, devise a plan to mitigate them, and monitor your performance at every stage of a project to ensure the best results.

Steps for Developing a Risk Management Strategy

It’s important to review risks at different stages of the project, especially when it’s in the development stage, and follow the right steps to manage those risks.

Identify risks

Risks can be defined as vulnerabilities that might pose a threat to the organization, employees, assets, and ongoing projects. Your focus should be on pointing out the areas that are red flags and might disturb your workflow, resources, and budget. You must follow the proactive approach, where you identify the risks beforehand instead of waiting for these red flags to turn into a big problem. Once you have identified risks, the next steps get easier.

Assessing risks

Once you have identified and documented each risk, the next step is for the audit team to assess the severity of these risks and determine the impact they have on your organization. They also assess if the risk can turn into a big cause for concern in the future and if it will affect the company’s annual revenue.

Based on the risk assessment, the manager and the team can prioritize these risks. You must document these risks and, depending on the nature of your business, review them annually. Risk assessment strategy varies from company to company. Some conduct a thorough risk assessment when executing a complex project, while others make it a regular strategy.

Addressing risks

Risk assessment or evaluation should give you a clear picture of how the risk will have a severe impact on your project or business. Based on this, you can set your priorities and work on the risks that pose a bigger threat to your organization. At this stage, you need to build a contingency plan so that you don’t face any surprises as you move ahead with your project.

You work with your team and stakeholders to develop a robust management strategy that can address the potential risks or mitigate them to some extent. If a risk seems too challenging to be fixed, you can always have a backup plan that shows you how to execute the same process with a different approach.

Monitoring risks

Now, you know what to do if a risk becomes a problem in your project development and how you are going to mitigate them. The next crucial step is monitoring these risks. Risk monitoring is a continuous process where you must assess risks and figure out the most practical solutions regularly. Risk monitoring will ensure that the risks do not turn into a problem that you can’t handle with the available resources.

Why your Business Needs a Risk Management Strategy?

Risk management does much more than address a simple risk. A thorough risk management strategy helps you identify your company’s strengths, weaknesses, opportunities, and threats. Let’s check out the few steps for managing risks effectively.

Business continuity

Unprecedented risks have become a common phenomenon after the global pandemic. Even if you think your company is prepared to address these challenges, the truth is certain risks can occur at any time and can shut your business for good. It can be an operational risk, like a machine failure, or a more complex one, such as a supplier ending their services with you. Certain risks can affect your business, employees, and even customers. Cybersecurity threats, for example, can result in data leaks which might take your business down.

Customer satisfaction

Your brand, logo, digital presence, and every part of your business is your asset. Your customers value these things when they do business with you. When you deploy an effective and well−planned risk management strategy, your customers feel confident about working with you. Not only customers but your investors and employees will also consider your risk management strategies. Know that contingency plans are a must for all companies. It gives your stakeholders and team a sense of security that if the original plan doesn’t work, they have a backup plan in place.

Increased profitability

The long−term objective for most businesses is increasing their revenues. You don’t want your team’s effort going down the drain just because of a breach that could have been avoided if you had a risk management strategy. Even a small security breach can lead to lengthy investigations, legal fees, and a lot of resources in recovering the lost data. To increase your profit and achieve your long−term goals, it’s important that you practice a proper risk management strategy.

Conclusion

Risk is an inevitable part of every business. While you can’t predict or control them ahead of time, there are ways to address them effectively. A risk management strategy shows you the right ways to deal with different kinds of risks and mitigate them. Once you have identified and assessed risks, you can devise a plan to avoid or transfer them.

Java Connection Releasesavepoint() Method With Example

A save point is a logical rollback point within a transaction. When you set a save point, whenever an error occurs past a save point, you can undo the events you have done up to the created save point using the rollback() method.

You can set a save point in a database using the setSavepoint() method of the Connection interface.

And, you can remove/release a save point using the releaseSavepoint() method.

This method accepts a Savepoint object as a parameter and removes the specified Savepoint.

To release a save point −

DriverManager.registerDriver(new com.mysql.jdbc.Driver());

Get the connection using the getConnection() method of the DriverManager class as −

String url = "jdbc:mysql://localhost/mydatabase"; Connection con = DriverManager.getConnection(url, "root", "password");

Set the save point using the setSavepoint() method to the required value using the setHoldability() method of the Connection interface as −

Savepoint savePoint = con.setSavepoint("MysavePoint");

Release the Savepoint if it is not required, using the releaseSavepoint() method.

con.releaseSavepoint("MysavePoint");

Let us create a table with name MyPlayers in MySQL database using CREATE statement as shown below −

CREATE TABLE MyPlayers( ID INT, First_Name VARCHAR(255), Last_Name VARCHAR(255), Date_Of_Birth date, Place_Of_Birth VARCHAR(255), Country VARCHAR(255), PRIMARY KEY (ID) );

Now, we will insert 7 records in MyPlayers table using INSERT statements −

insert into MyPlayers values(1, 'Shikhar', 'Dhawan', DATE('1981-12-05'), 'Delhi', 'India'); insert into MyPlayers values(2, 'Jonathan', 'Trott', DATE('1981-04-22'), 'CapeTown', 'SouthAfrica'); insert into MyPlayers values(3, 'Kumara', 'Sangakkara', DATE('1977-10-27'), 'Matale', 'Srilanka'); insert into MyPlayers values(4, 'Virat', 'Kohli', DATE('1988-11-05'), 'Delhi', 'India'); insert into MyPlayers values(5, 'Rohit', 'Sharma', DATE('1987-04-30'), 'Nagpur', 'India'); insert into MyPlayers values(6, 'Ravindra', 'Jadeja', DATE('1988-12-06'), 'Nagpur', 'India'); insert into MyPlayers values(7, 'James', 'Anderson', DATE('1982-06-30'), 'Burnley', 'England');

Following JDBC program demonstrates the releaseSavepoint() method of the Connection interface. Here, we inserted a new record in the Myplayers table. Set the savepoint, deleted the previously inserted record and rolled back to the created save point and displayed the contents of the table finally released the created savepoint using the releaseSavepoint() method.

Example import java.sql.Connection; import java.sql.Date; import java.sql.DriverManager; import java.sql.PreparedStatement; import java.sql.ResultSet; import java.sql.SQLException; import java.sql.Savepoint; import java.sql.Statement; public class Connection_releaseSavepoint { public static void main(String args[]) throws SQLException { DriverManager.registerDriver(new com.mysql.jdbc.Driver()); String url = "jdbc:mysql://localhost/mydatabase"; Connection con = DriverManager.getConnection(url, "root", "password"); System.out.println("Connection established......"); con.setAutoCommit(false); Statement stmt = con.createStatement(ResultSet.TYPE_SCROLL_SENSITIVE, ResultSet.CONCUR_UPDATABLE); ResultSet rs = stmt.executeQuery("select * from MyPlayers"); System.out.println("Contents of the table initially"); while(rs.next()) { System.out.print("ID: "+rs.getString("ID")+", "); System.out.print("First_Name: "+rs.getString("First_Name")+", "); System.out.print("Last_Name: "+rs.getString("Last_Name")+", "); System.out.print("Date_Of_Birth: "+rs.getString("Date_Of_Birth")+", "); System.out.print("Place_Of_Birth: "+rs.getString("Place_Of_Birth")+", "); System.out.print("Country: "+rs.getString("Country")); System.out.println(""); } PreparedStatement pstmt = con.prepareStatement("INSERT INTO MyPlayers VALUES (?, ?, ?, ?, ?, ?)"); pstmt.setInt(1, 8); pstmt.setString(2, "Virat"); pstmt.setString(3, "Kohli"); pstmt.setDate(4, new Date(594733933000L)); pstmt.setString(5, "Delhi"); pstmt.setString(6, "India"); pstmt.executeUpdate(); Savepoint savePoint = con.setSavepoint("MysavePoint"); stmt.execute("Delete from MyPlayers where id = 8"); con.rollback(savePoint); System.out.println("Contents of the table"); rs = stmt.executeQuery("select * from MyPlayers"); while(rs.next()) { System.out.print("ID: "+rs.getString("ID")+", "); System.out.print("First_Name: "+rs.getString("First_Name")+", "); System.out.print("Last_Name: "+rs.getString("Last_Name")+", "); System.out.print("Date_Of_Birth: "+rs.getString("Date_Of_Birth")+", "); System.out.print("Place_Of_Birth: "+rs.getString("Place_Of_Birth")+", "); System.out.print("Country: "+rs.getString("Country")); System.out.println(""); } con.releaseSavepoint(savePoint); System.out.println("Save point released"); } }

Now, you can observe the new record created before the save point in the resulted. Since we have deleted this record after setting the save point, this is reverted at the time of roll back.

Output Connection established...... Contents of the table initially ID: 1, First_Name: Shikhar, Last_Name: Dhawan, Date_Of_Birth: 1981-12-05, Place_Of_Birth: Delhi, Country: India ID: 2, First_Name: Jonathan, Last_Name: Trott, Date_Of_Birth: 1981-04-22, Place_Of_Birth: CapeTown, Country: SouthAfrica ID: 3, First_Name: Kumara, Last_Name: Sangakkara, Date_Of_Birth: 1977-10-27, Place_Of_Birth: Matale, Country: Srilanka ID: 4, First_Name: Virat, Last_Name: Kohli, Date_Of_Birth: 1988-11-05, Place_Of_Birth: Mumbai, Country: India ID: 5, First_Name: Rohit, Last_Name: Sharma, Date_Of_Birth: 1987-04-30, Place_Of_Birth: Nagpur, Country: India ID: 6, First_Name: Ravindra, Last_Name: Jadeja, Date_Of_Birth: 1988-12-06, Place_Of_Birth: Nagpur, Country: India ID: 7, First_Name: James, Last_Name: Anderson, Date_Of_Birth: 1982-06-30, Place_Of_Birth: Burnley , Country: England Contents of the table after rollback ID: 1, First_Name: Shikhar, Last_Name: Dhawan, Date_Of_Birth: 1981-12-05, Place_Of_Birth: Delhi, Country: India ID: 2, First_Name: Jonathan, Last_Name: Trott, Date_Of_Birth: 1981-04-22, Place_Of_Birth: CapeTown, Country: SouthAfrica ID: 3, First_Name: Kumara, Last_Name: Sangakkara, Date_Of_Birth: 1977-10-27, Place_Of_Birth: Matale, Country: Srilanka ID: 4, First_Name: Virat, Last_Name: Kohli, Date_Of_Birth: 1988-11-05, Place_Of_Birth: Mumbai, Country: India ID: 5, First_Name: Rohit, Last_Name: Sharma, Date_Of_Birth: 1987-04-30, Place_Of_Birth: Nagpur, Country: India ID: 6, First_Name: Ravindra, Last_Name: Jadeja, Date_Of_Birth: 1988-12-06, Place_Of_Birth: Nagpur, Country: India ID: 7, First_Name: James, Last_Name: Anderson, Date_Of_Birth: 1982-06-30, Place_Of_Birth: Burnley , Country: England ID: 8, First_Name: Virat, Last_Name: Kohli, Date_Of_Birth: 1988-11-05, Place_Of_Birth: Delhi, Country: India Save point released

Update the detailed information about Example Of Risk/Reward Ratio (With Excel Template) on the Moimoishop.com website. We hope the article's content will meet your needs, and we will regularly update the information to provide you with the fastest and most accurate information. Have a great day!