Time-weighted rate of return is a measure of a portfolio’s compound rate of return that controls for the inflow and outflow of cash. The efficient frontier is a graphic representation of the ...

The Sharpe ratio, also known as the reward-to-variability ratio, is perhaps the most common portfolio management metric. This is the formula: The excess return of the portfolio over the risk-free ...

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.

Holding period return is one measure of investment success or failure and can help you determine the overall performance of your investment portfolio. It can also help guide future portfolio ...

Sharpe ratio. Popular Brokers : Popular Brokers 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.

The formula for calculating covariance takes the daily return minus the mean return for each asset multiplied by each other. Covariance can maximize diversification in a portfolio. The goal is to ...

The Treynor ratio is another useful alternative that uses beta to assess a portfolio's risk-adjusted returns. The calculation is excess return divided by beta. As mentioned before, investors who ...