In practice, this 1.5% real risk-free rate is the rate that investors expect to earn after inflation from a risk-free investment with a 10-year duration after inflation.

If the risk-free rate is 0.5%, inflation is estimated to be 2.5%, and the bond's liquidity and maturity premiums are both 1%, adding all of these together produces a total of 5%.

To calculate this ratio, determine the difference between an investment's average return rate and the risk-free rate. Then divide this figure by the standard deviation of negative returns.

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 ...

Downside risk is an investing concept that refers to the potential loss in value of an investment. It measures the likelihood of an asset declining in price and the extent of that potential decline.

In addition to a grade, Children At Risk also assigns rankings to each school in its annual data, something TEA does not do. The ranks are assigned by comparing school scores among campuses at the ...

The Treynor ratio and the Sharpe ratio are financial metrics that use different approaches to evaluate the risk-adjusted ...

The ASA issued updated advice on Monday urging health care workers to screen for stroke risk factors such as high blood pressure, elevated cholesterol, high blood sugar and obesity. Peakstock ...

Explore the key distinctions between risk and volatility in the context of investing. Learn how to assess and manage both to ...

Learn what Value at Risk is, what it indicates about a portfolio, its pros and cons, and how to calculate the VaR of a portfolio using Microsoft Excel.

Maximum utility investing Firstly, investors must understand where they sit on the risk spectrum. This is hard to do. For example, when we review IC Portfolio Clinic submissions, there is often a ...