Risk adjusted return


 

Home
Site Map
Add Term
Search
About Us
Contributors

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

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.


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.


Adjusted for inflation

Adjusted for inflation

Corrected for price changes to yield an equivalent in terms of goods and services. The adjustment divides nominal amounts for different years by price indices for those years -- e.g. the CPI or the implicit price deflator -- and multiplies by 100. This converts to real values, i.e. valued at the prices of the base year for the price index.


Adjusted gross income

Adjusted gross income

In 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 basis

Adjusted basis

Price 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.


Further Suggestions

Adjusted present value (APV)
Net adjusted present value
Risk adjusted discount rate
Inflation adjusted
Seasonally adjusted
Risk adjusted profitability
Adjusted exercise price
Adjusted balance method
adjusted earnings
Adjusted Gross Income


 
All rights Reserved. Do not copy without permission. T4 Innovations Ltd