How Good Is Your Performance? - Understanding Portfolio Performance Measures

Are you a good #investor? Answering that #question is more #complicated than simply comparing your #return to that of a #benchmark. The amount of #risk you take to achieve those #returns must also be considered. Depending on the context of the #evaluation you might want to use total risk, #systematic risk or some other measure of risk. The Sharpe Ratio, Treynor Ratio, Jensen's Alpha and the Sortino Ratio are all #performanceanalysis #measures you should consider using. #Rankings of #investmentstrategies will differ depending on the #measurement used. You should use the one most applicable to your #situation. #investmenttips #riskmanagement #cfainstitute #caia #frm

Related Videos: