Investing money into the markets has a high degree of risk. Learn to calculate your risk and reward so the amount you stand to gain is worth the risk you take.

Reviewed by Chip Stapleton There are numerous financial ratios that help determine the financial health of a company. One of the most important financial ratios, and one carefully regarded by ...

Combining the slope and standard deviation offers a clear picture of growth relative to risk. To calculate the K-ratio, divide the slope of the equity curve by the standard deviation of returns.

Understanding the Risk-Free Rate and Standard Deviation The three inputs into a Sharpe ratio calculation are your expected return, the risk-free rate and the standard deviation. Your return covers ...

This is where the Sharpe ratio comes in handy. Measuring investment returns and risk, the calculation is widely used among professional investment managers. It's important to understand the Sharpe ...

To calculate the Equity to Asset Ratio ... Alternatively, reducing debt through repayments can also improve the ratio. Risk Disclosure: Please be fully informed regarding the risks and costs ...

The net stable funding ratio is a liquidity standard requiring banks to hold enough stable funding to cover the duration of their long-term assets. For both funding and assets, long-term is mainly ...

The Securities and Exchange Board of India (SEBI) has mandated mutual funds to disclose the Information Ratio (IR) as a new metric for evaluating the risk-adjusted returns (RAR) of equity-oriented ...

You can calculate a bank's capital to risk-weighted assets ratio in Microsoft Excel once you determine its tier 1 and tier 2 capital and its risk-weighted assets. The capital-to-risk weighted ...

It evaluates risk-adjusted performance by comparing the growth rate of returns to their volatility. This calculation highlights the steadiness of returns, helping investors refine their strategies. A ...