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Risk-adjusted return refers to the potential return of an investment considering its risk level. When investing, especially in higher-risk assets like cryptocurrency, the aim should be to secure a return that offsets the risks taken. For example, if investing $10,000 in a risky startup is expected to yield $15,000 in returns after three months, it provides an excellent risk-adjusted return, as the investor gets their capital back much quicker than in more traditional investment models.