Discover how to evaluate risk in investments using Sharpe, Treynor ratios, alpha, and beta for better portfolio performance compared to risk-free benchmarks.

The Sharpe Ratio is a mathematical formula which measures the performance of an asset or a group of assets relative to their assumed risk. Formulaically, the Sharpe Ratio is the expected returns of an ...

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 ...

The Sharpe ratio offers a quiet clue about whether a mutual fund’s returns are truly earned or simply riding on risk.

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 ...

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 ...