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 ...

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 ...

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 ...

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 ...

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

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.

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 ...

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 ...