What Is the Sortino Ratio and How Do You Use It?
The Sortino Proportion assists measure the risk-adjusted return of an investment. Both it and the Sharpe Ratio determine an investment’s return through risk-adjusted methods. Nonetheless, the Sortino Ratio just consider drawback volatility. Learn about the Sortino Proportion, how people use it, and how it can benefit investors. The Sortino Ratio: The Basics Called after economic expert Frank A. Sortino, the Sortino Ratio subtracts a portfolio’s risk-free rate from its return. It after that divides that number by the investment or asset’s disadvantage discrepancy. That’s procedure of disadvantage threat that considers…
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