Risk-Adjusted Return

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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 of the asset multiplied by the benchmark return to create a hypothetical asset that has the same risk characteristics. The difference between the asset return and the beta times the benchmark is the risk adjusted return and is also known as the alpha.

The return on an asset or investment relative to the return on assets and investments with similar risk. The risk-adjusted return can help an investor determine whether he/she is extracting the highest possible return for the least possible risk. One way to calculate the risk-adjusted return is to take the Sharpe ratio.

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Alpha P/E Effect portfolio R-Squared Retorno ajustado por exposicion a un riesgo Risk Adjusted Return on Capital Risk-Reward Ratio Size Effect Sortino Ratio Value Added Value Line, Inc.			The principal objective of the IREIT is the acquisition of income generating properties in the GCC which ensure an acceptable risk-adjusted return on investment in the form of quarterly profit distribution whilst ensuring reasonable capital appreciation. $80m trust! by Gulf Daily News (Manama, Bahrain) The integration of a fixed income team into EFG-Hermes Asset Management has been an instrumental factor in our ability to take advantage of the dislocation in credit markets, allowing us to achieve superior risk-adjusted returns," El Hoshy noted, explaining that in the past year, EFG-Hermes Asset Management has expanded to add a capital-protected fund, collaborated on the management of two multi-regional funds, and launched the $150 million EFG-Hermes Saudi Arabia Equity Fund. Bank of Alexandria 2 Money Market Fund leads the market in three-year ... by CPI Financial The principal objective of the IREIT is the acquisition of income generating properties in the GCC which ensure an acceptable risk-adjusted return on investment in the form of quarterly profit distribution whilst ensuring reasonable capital appreciation. Inovest to launch $80m property trust by TradeArabia (Manama, Bahrain)			Risk Capital Risk Classes Risk controlled arbitrage Risk Factor Risk Graph Risk Hedge Risk Indexes Risk Lover risk management Risk Manager Risk Neutral risk of loss Risk Premium Risk Premium Approach Risk Profile Risk Ratio Risk Reversal Risk seeker Risk Taker Risk Tolerance Risk Transfer risk versus reward Risk-Adjusted Discount Rate Risk-Adjusted Performance Risk-adjusted profitability Risk-Adjusted Return Risk-Averse Risk-based capital ratio risk-based capital requirement Risk-Free Risk-Free Asset Risk-Free Interest Rate risk-free rate Risk-Free Rate of Return Risk-Free Return Risk-Loving Risk-Neutral Risk-Prone Risk-Return Trade-Off Risk-Return Tradeoff Risk-Reward Ratio Risk-Weighted Assets Riskless Arbitrage Riskless Investment Riskless or Risk-Free Asset Riskless Rate Riskless rate of return Riskless Transaction Risks and Opportunities Risky Asset Risky Operation			Risk Weighted Assets Risk Weighted Capital-adequacy Ratio Risk Work In Progress Risk Your Life Risk Your Life Headquarters Risk, Hazard and Value Evaluation Risk, Intelligence and Analysis Team Risk, Prevention and Health Behavior Risk, Research and Liaison Team Risk, Systematic Risk, Unsystematic Risk-Adjusted Complication Index Risk-adjusted discount rate Risk-adjusted discount rate Risk-Adjusted Discount Rates Risk-Adjusted Fair Value Risk-Adjusted Monitoring of Outcomes Risk-Adjusted Mortality Index Risk-Adjusted Mortality Rate Risk-adjusted Net Present Value Risk-Adjusted Operative Mortality Risk-adjusted performance Risk-Adjusted Performances Risk-adjusted profitability Risk-Adjusted Readmissions Index Risk-Adjusted Return Risk-Adjusted Return On Assets Risk-Adjusted Return On Capital Risk-Adjusted Return On Capital Risk-Adjusted Return on Risk-Adjusted Capital Risk-Adjusted Returns Risk-averse Risk-averse Risk-aversion Risk-aversion Risk-Based Acquisition Management Risk-Based Asset Management Risk-Based Assurance and Acceptance risk-based audit approach Risk-Based Audit Framework Risk-Based Capital Risk-based capital ratio risk-based capital requirement Risk-Based Compliance Monitoring Programme Risk-Based Corrective Action Risk-Based Decision Analysis Risk-Based Disposal Approval Risk-Based End States Risk-Based Exposure Limit Risk-Based Haircuts Risk-Based Inspection Risk-Based Inspection and Maintenance Risk-based Inspection Guide

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