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LeoGlossary: Risk Adjusted Return

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How to get a Hive Account


A calculation of the profit potential of an investment taking into account the risk involved. This is usually compared to a virtually risk free investment such as US Treasuries.

This can be expressed simply as a number or as a rating.

It can be applied to stocks, investment funds such as hedge funds, and entire portfolios.

The Sharpe Ratio is used for the measurement of risk.

General:

LeoGlossary: Risk Adjusted Return | Ecency