Comparison 88

Comparison of Risk vs. Return Metrics

What are Risk vs. Return Metrics?

Risk vs. Return Metrics are analytical tools used in finance to assess the relationship between the level of risk taken by an investment and the potential return generated from that investment.


Sharpe ratio vs. Information ratio

Sharpe ratio Information ratio
description the average excess retum per unit of volatility in excess retum.
numerator excess return (above the risk-free rate) average excess return (above the risk-free rate)
denominator standard deviation of return standard deviation of excess return
formula https://www.investopedia.com/terms/s/sharperatio.asp#:~:text=The%20Sharpe%20ratio%20is%20calculated,of%20the%20portfolio's%20excess%20return.
SPY range