Risk adjusted return


 

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Risk adjusted return

Often 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 return

Return earned on an asset normalized for the amount of risk associated with that asset.



Risk adjusted return

Similar Matches

Net adjusted present value

Net adjusted present value

The adjusted present value minus the initial cost of an investment.


Risk adjusted profitability

Risk adjusted profitability

A probability used to determine a "sure" expected value (sometimes called a certainty equivalent) that would be equivalent to the actual risky expected value.


Adjusted debit balance (ADB)

Adjusted debit balance (ADB)

The account balance for a margin account that is calculated by combining the balance owed to a broker with any outstanding balance in the special miscellaneous account, and any paper profits on short accounts.


Risk adjusted discount rate

Risk adjusted discount rate

The rate established by adding a expected risk premium to the risk-free rate in order to determine the present value of a risky investment.


Adjusted gross income (AGI)

Adjusted gross income (AGI)

Gross income less allowable adjustments, is the income on which an individual is taxed by the federal government.


Further Suggestions

adjusted earnings
Adjusted for inflation
Adjusted balance method
Adjusted Gross Income
Seasonally adjusted
Adjusted present value (APV)
Adjusted basis
Adjusted exercise price
adjusted gross income
Inflation adjusted


 
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