Every investment involves a possible gain and a possible loss. The risk/reward ratio compares how much you could lose to how ...

Learn what active risk is and how to calculate it. Understand the methods to evaluate active risk in portfolios and explore examples of funds outperforming benchmarks.

You don’t need a doctoral degree in finance to calculate your portfolio’s investment returns. A few principles are enough to turn even the most math-phobic people into shrewd investors. While basic ...

Learn how to calculate stock beta in Excel using historical price data and formulas—enhance your investment analysis with ...

Downside risk refers to the potential for an investment to decrease in value. Unlike general risk, which considers both upward and downward price movements, downside risk focuses solely on the ...

Performance measures must align with portfolio use and features. Avoid Sharpe and similar ratios due to flaws; consider alternatives like trimmed alpha, median returns, and value at risk. CAGR is ...

Investors, whether beginner or seasoned professionals, all have a threshold for risk. Some prefer to play it safe and favor a low-risk investment plan while others are more advantageous with a “high ...

Effective risk management requires having the right tools. This is where portfolio risk software solutions come in handy for your RIA firm. These platforms let you identify potential risks and come up ...