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LeoGlossary: Risk Adjusted Return
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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:
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