Every investment carries with it some level of risk and reward. Unfortunately, these are unknown variables. They change over time and in the face of market factors, and there’s no way of knowing ...

The Treynor ratio and the Sharpe ratio are financial metrics that use different approaches to evaluate the risk-adjusted returns of an investment portfolio. The Treynor ratio employs beta and measures ...

Amid renewed market swings, investors are rethinking how they judge mutual funds. The focus is shifting from raw returns to ...

What is a good return for your portfolio? If a bond portfolio generated a 4% return over the past year, it could be considered a pretty decent return. However, investors who prioritized high-growth ...

Hope for performance, but prepare for risk. For most people in the financial world, performance is key. When you see an ad for a mutual fund, the first thing you're likely to see is how well the fund ...

Forbes contributors publish independent expert analyses and insights. Bitcoin delivered the highest risk-adjusted returns among major tech assets in October 2024, with a Sharpe ratio of 4.35, ...

Named after Nobel laureate William Sharpe (though he preferred to call it the reward-to-variability ratio), the Sharpe Ratio is a key tool for understanding historical returns of various investments, ...

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