The following examples of applications of the Sortino ratio formula demonstrate how calculating risk-adjusted returns can benefit investors. The first example is a bond portfolio that has achieved ...

Discover the importance of inflation-adjusted returns in investment decisions. Learn about the components, calculations and ...

The risk-adjusted return of stocks in the same period was 11% to 13.8%. Risk-adjusted returns account for how likely it is that you can buy an asset at just the right time and sell it at just the ...

The basket’s median constituent has a prospective risk-adjusted return of 0.9. Our High Sharpe Ratio basket has posted a year-to-date return of 3%, outperforming both the cap-weighted S&P 500 (2 ...

Bitcoin's Sharpe ratio, a measure of risk-adjusted returns, was -1 as of this writing, according to charting platform Trading View, suggesting that the expected return was lower than that of a ...

A Sharpe ratio of 1.1 is good, as it indicates a healthy risk-adjusted return. However, this same investor may have to improve their Sharpe ratio if the benchmark index has a 1.3 Sharpe ratio.

For example, some of these tools compare different investments with varying risk profiles, like the broader market (the S&P 500, for example) or the “risk-free rate” of a 10-year U.S. Treasury.