Formula and Example Every investor wants to earn more money from their portfolio, but putting money into stocks and even funds can be risky. The Sortino ratio indicates how much risk an investor ...

The Sharpe ratio is the standard formula for risk-adjusted returns. You take the average monthly (or weekly or annual) return of the portfolio, subtract the risk-free rate (this is often but not ...

Portfolio management is how you set yourself up for long-term financial success and stability. Learn how to square your own investments with your time horizon and risk tolerance. There’s no one ...

Adding assets with a negative covariance to a portfolio tends to minimize risk. A negative covariance indicates that the two assets are moving in opposite directions. A formula can help you ...

Comparing your portfolio's Sharpe ratio to a benchmark can help you gauge if you have desirable risk-adjusted returns. For instance, if you use the S&P 500 as a benchmark, you should aim for a ...

But with an unreliable risk profiler and portfolio risk analytics, you might be moving your client into an unsuitable portfolio. The output of traditional risk profiles typically squeeze investors ...

Market corrections are inevitable. This guide provides actionable steps to prepare your portfolio for a downturn.

If they do invest in stocks, they'll likely choose safe stocks, and equities will make up a small percentage of their portfolio. There's no strict formula for risk tolerance. Your risk tolerance ...

Suppose a retiree has 75% of their portfolio invested in risk-free assets like U.S. Treasuries ... stocks can be determined with the following formula: For example, suppose you have an investment ...

With the stock market soaring to new all-time highs on what seems like a daily basis, managing your portfolio's risk might not be the first thing on your mind. If you wait for a downturn ...

While this alone should be convincing enough to own it in one’s portfolio, adding Harry Markowitz’s Modern Portfolio Theory (MPT) [1] into the equation ... the risk and return of individual ...

The Sortino ratio uses three inputs for its formula. The numerator is the difference between a portfolio's return and the risk-free rate of return. You can use a portfolio's actual or expected return.