Risk Adjusted Return: The 5 Best Ratios And Formulas

In investing and trading, understanding risk-adjusted returns is crucial for making smart decisions. In this video, we dive into five essential ratios and formulas that help measure performance against risk: the Sharpe Ratio, Sortino Ratio, Jensen's Alpha, Treynor Ratio, and a simple method for evaluating returns. Mastering these metrics will give you a solid foundation for informed investment strategies and help you better assess potential gains while managing risk.