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 ...

When Bobby Axelrod on the hit show Billions went to an institutional investor to raise funds for Axe Capital, the investor brought up a problem: “My people have a few questions. Your Sharpe ratio’s ...

Individual investors typically look at their accounts in terms of profit/loss. For professional portfolio managers, the assumption is that they will make a profit over the long run, so they're ...

When you begin exploring mutual funds, returns usually take center stage. They are the first numbers you notice, and the ones most advertisements draw your attention toward. Yet, as you look closer, ...

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, ...

Amid renewed market swings, investors are rethinking how they judge mutual funds. The focus is shifting from raw returns to how much risk a fund takes to earn those gains. A widely used tool is ...

Editorial Note: Forbes Advisor may earn a commission on sales made from partner links on this page, but that doesn't affect our editors' opinions or evaluations. You’ve probably heard investing ...

You’ve probably heard investing professionals talk about risk-adjusted returns. This is a way of measuring the performance of an investment that factors in risk—specifically, the extra risk required ...