Using the formula '=SQRT(5)*D13' indicates that the weekly volatility is 1.46%. You can also calculate the volatility of an entire portfolio, but this formula is far more complex. To keep things ...

This is the formula: The excess return of the portfolio over the risk-free rate is standardized by the standard deviation of the excess of the portfolio return. How It Works Hypothetically ...

Portfolio management is how you set yourself up for long-term financial success and stability. Learn how to square your own investments with your time horizon and risk tolerance. There’s no one ...

Adding assets with a negative covariance to a portfolio tends to minimize risk. A negative covariance indicates that the two assets are moving in opposite directions. A formula can help you ...

The Sortino ratio uses three inputs for its formula. The numerator is the difference between a portfolio's return and the risk-free rate of return. You can use a portfolio's actual or expected return.

A calculated approach to risk management allows investment objectives to be met regardless of the conditions. Managing risk is one of the most important portfolio management objectives. Risk is simply ...

With the stock market soaring to new all-time highs on what seems like a daily basis, managing your portfolio's risk might not be the first thing on your mind. If you wait for a downturn ...

Comparing your portfolio's Sharpe ratio to a benchmark can help you gauge if you have desirable risk-adjusted returns. For instance, if you use the S&P 500 as a benchmark, you should aim for a ...