You don’t need a doctoral degree in finance to calculate your portfolio’s investment returns. A few principles are enough to turn even the most math-phobic people into shrewd investors. While basic ...

Every investment involves a possible gain and a possible loss. The risk/reward ratio compares how much you could lose to how much you could gain. Calculating this ratio may help you decide whether a ...

To deliver personalized solutions, financial advisors must measure investment risk with confidence. What does Morningstar’s Portfolio Risk Score do? What does Morningstar’s Portfolio Risk Score do?

Downside risk refers to the potential for an investment to decrease in value. Unlike general risk, which considers both upward and downward price movements, downside risk focuses solely on the ...

In our previous report, we discussed how practitioners typically measure investment risk. We also noted how there are ways to reduce risks in a portfolio, such as ‘diversification,’ which can help ...

Performance measures must align with portfolio use and features. Avoid Sharpe and similar ratios due to flaws; consider alternatives like trimmed alpha, median returns, and value at risk. CAGR is ...