An investor can calculate the Sharpe ratio using either historical or expected returns. William F. Sharpe developed the Sharpe ratio in 1966 as an investment performance analysis tool. In 1990 ...

Many brokerage firms automatically calculate your portfolio's Sharpe ratio. However, investors should still know what goes into this metric. Knowing what constitutes the Sharpe ratio can help ...

If you are confused by personal finance terms, jargon and calculations, heres a series to simplify and deconstruct these for ...

The Treynor ratio is similar to the Sharpe ratio, although the Sharpe ratio uses a portfolio's standard deviation to adjust the portfolio returns. Investopedia / Michela Buttignol The Treynor ...

While the Sharpe ratio evaluates risk-adjusted returns ... alignment with conservative investment strategies. To calculate the K-ratio, you need two key components: the slope of the equity curve ...

I will, however, suggest below an alternative method of calculating the Sharpe ratio if you’re really into it. I have not discussed factor risk measures here (e.g. portfolio exposure to the ...

Learn More Sharpe Ratio vs. Treynor Ratio: What's the Difference? How Do You Calculate an Investment’s Beta? You calculate the beta of an investment by taking the covariance between the return ...

The Sortino ratio focuses on downside volatility, while the Sharpe ratio considers both ... of the Sortino ratio formula demonstrate how calculating risk-adjusted returns can benefit investors.