Risky investments are - by definition - far from certain to deliver on their promise of high returns." Marks shared a brilliant risk-return chart from his book "The Most Important Thing." ...

To calculate the Sharpe ratio, you first need your portfolio's rate of return. Next, you need the rate of a risk-free investment, such as Treasury bonds. Subtract this risk-free rate from your ...

This is done by removing the rate of return on a risk-free investment, such as a U.S. Treasury Bond, from the experienced rate of return. This is then divided by the associated investment’s ...