Risk-adjusted return is a critical element to successful ... I’m not suggesting investors need to start calculating Sharpe ratios or other sophisticated metrics for their portfolios.

But what does this mean? For new investors, the numbers behind calculating risk-adjusted return can be daunting to wrap your mind around. Here's an example to get you thinking the right way before ...

The method most often used to calculate total returns is annual ... a lower return from a low-risk investment can be a better risk-adjusted return than a superior return produced by a higher ...

Calculate annual return: Adjust purchase price for splits, then annualize simple return. Dividends can be included by using dividend-adjusted prices in return calculations. Investor Alert ...

For ETFs, the excess return should be equal to the risk-adjusted measure that exceeds ... to see which produces the most excess returns. Calculating Excess Return for Exchange Traded Funds ...

While the Sharpe ratio evaluates risk-adjusted returns and the Sortino ratio highlights downside risk, the K-ratio adds ...

The Sortino Ratio helps investors measure the additional return they are likely to receive in exchange for taking on downside risk. To calculate this ratio, determine the difference between an ...