The Sharpe ratio is one way to capture this risk-versus-reward detail and give investors extra insight into their assets' performance. Some investors use an index fund as a benchmark and attempt ...

For example, imagine a portfolio with an annual return of 9%, a risk-free rate of 3% and a beta of 1.2. The Treynor ratio ...

The Sortino ratio focuses on downside volatility, while the Sharpe ratio considers both upside and downside volatility in its calculation. Funds with higher Sortino ratios over longer periods tend ...

Goldman Sachs analysts rebalanced their “high Sharpe Ratio” basket, which identifies 50 S&P 500 (SP500) stocks with the ...

Modern Portfolio Theory leverages the Sharpe ratio to enhance portfolio construction by emphasizing asset class correlations – especially in fixed income. Using Morningstar index data ...