Risk-Adjusted Return
InvestingA measure of how much return an investment produces relative to the amount of risk taken, allowing fair comparison.
Example
Example: Consider an investor building a $100,000 portfolio. Risk-Adjusted Return — a measure of how much return an investment produces relative to the amount of risk taken, — directly affects investment strategy and long-term returns. Getting this concept right can mean tens of thousands of dollars in difference over a 20-year period. Model your portfolio with our investment calculator.