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Risk adjusted return |
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Risk adjusted returnOften we subtract from the rate of return on an asset a rate of return from another asset that has similar risk. This gives an abnormal rate of return that shows how the asset performed over and above a benchmark asset with the same risk. We can also use the beta against the benchmark to calculate an alpha, which is also risk-adjusted performance.Risk adjusted returnReturn earned on an asset normalized for the amount of risk associated with that asset.Risk adjusted return Similar MatchesAdjusted gross incomeAdjusted gross incomeIn the US, a person's income on which federal income tax is calculated. This is gross income less adjustments such as Individual Retirement Account, Simplified Employee Pension Plan, Keogh Plan and alimony payments but before itemised deductions such as state and local income taxes, interest expenses and medical expenses. Adjusted balance methodAdjusted balance methodMethod of calculating finance charges that uses the account balance remaining after adjusting for all transactions posted during the given billing period as its basis. Related: Average daily balance method, previous balance method, past due balance method. Adjusted earningsAdjusted earningsIf a company's earnings figures are distorted either positively or negatively by exceptional one-off occurrences in the year, its directors can choose to clarify the performance by releasing adjusted earnings. In other words, earnings with the exceptional items stripped out which they believe are more representative of its underlying performance. Adjusted basisAdjusted basisPrice from which to calculate and derive capital gains or losses upon sale of an asset. Account actions such as any stock splits that have occurred since the initial purchase must be accounted for. Adjusted exercise priceAdjusted exercise priceTerm used in options on Ginnie Mae (Government National Mortgage Association) contracts. The final exercise price of the option accounts for the coupon rates carried on Ginnie Mae mortgages. For example, if the standard GNMA mortgage has an 9% yield, the price of GNMA pools with 13% mortgages in them is altered so that the investor receives the same yield. Further SuggestionsAdjusted present value (APV)Net adjusted present value Seasonally adjusted Risk adjusted profitability Adjusted debit balance (ADB) Inflation adjusted Adjusted gross income (AGI) Risk adjusted discount rate Adjusted Gross Income Adjusted for inflation |
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