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

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 ...

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 ...

Regardless of how you feel, it's wise to see a doctor for an annual physical exam. The same goes for an investment portfolio. Investors should periodically measure performance and analyze the types of ...

In our previous report, we discussed how practitioners typically measure investment risk. We also noted how there are ways to reduce risks in a portfolio, such as ‘diversification,’ which can help ...

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 ...

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 ...