If your expected return on the individual investments in your portfolio is known or can be anticipated, you can calculate the portfolio's overall rate of return using Microsoft Excel. If you don't ...

The Sortino ratio uses three inputs for its formula. The numerator is the difference between a portfolio's return and the risk-free rate of return. You can use a portfolio's actual or expected return.

Time-weighted return (TWR) calculates an investment portfolio or fund’s performance while accounting for external cash flows. Investment funds usually have money flowing in or out at various times.

Rumors of the death of the 60-40 portfolio — that old standby allocation of 60% stocks and 40% fixed-income investments — are ...

In this article, we will discuss value investor Joel Greenblatt’s portfolio, hedge fund returns, and his Magic Formula. Log In Sign Up Premium #1 AI Stock to Buy ...

The return is the percentage change of the value of the portfolio before any new cash flows. It is "HP" in the formula below. Step 3: Calculate the Geometric Mean of All Sub-Periods .

Example Example of holding period return. We'll look at two examples to illustrate this concept. First, consider a bond investment.We'll say you invest $1,000 in a 30-year Treasury bond that pays ...

Let’s say the covariance of the S&P 500’s return to AAPL’s returns is 0.032, which is then divided by the average market return’s variance of 0.0235 to give a beta of 1.36. The formula ...

In this article, we will discuss value investor Joel Greenblatt’s portfolio, hedge fund returns, and his Magic Formula. You can skip our detailed analysis of Greenblatt’s investment philosophy ...

Assume a (very successful) portfolio returned 15% with a 10% standard deviation. The risk-free rate of return is 4%. Knowing these numbers allows an investor to calculate the portfolio's Sharpe ratio: ...