Required rate of return (RRR) gives investors a benchmark to determine the minimum acceptable return on an investment considering the risk involved. By calculating RRR, investors can assess whether an ...

Risk-free return represents the theoretical yield on a perfect investment with zero risk. Learn how it's calculated and ...

Hedge funds throw away half of their potential returns by not explicitly calculating risk-adjusted return. After working for a fund and having numerous conversations with hedge and mutual fund ...

Investing in any form involves a certain level of risk, and the potential return is directly related to the level of risk taken on. This principle holds true for both private equity and venture ...

Benzinga explains the various measures used by smart investors to measure risk and return more accurately. Investing is about getting the most bang for your buck. Average investors chase high returns, ...

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 ...

High risk-adjusted returns suggest efficient performance for the invested capital. Low risk-adjusted returns indicate potentially suboptimal investments. Comparing risk-adjusted returns helps select ...

Why settle for low returns on your nest egg when you can earn higher returns for about the same level of risk?