-
The Diminishing Benefits of Diversification
Diversification is a core principle in portfolio management, aimed at reducing risk by spreading investments across multiple instruments. However,...
February 6, 20250 -
Is the Efficient Market Hypothesis flawed?
The Efficient Market Hypothesis (EMH) is a theory in financial economics that states that financial markets are “informationally efficient,”...
-
Evaluating Portfolio risk-adjusted returns
Evaluating a portfolio’s risk-adjusted return is more informative than evaluating its return alone because it allows investors to compare...
-
Evaluation Metrics: Gain-to-Pain Ratio
The Gain to Pain ratio (also known as the RPR – Reward to Pain ratio) is a risk-adjusted performance...
-
Evaluation Metrics: Treynor Ratio
The Treynor ratio is a measure of risk-adjusted return, similar to the Sharpe ratio and the Sortino ratio. It...
-
Evaluation Metrics: Sortino Ratio
The Sortino ratio is a risk-adjusted performance measure that is similar to the Sharpe ratio. It is used to...
-
Evaluation Metrics: Sharpe Ratio
The Sharpe Ratio is a measure of the risk-adjusted return of an investment. It was developed by economist William...
-
Efficient Frontier
What is the efficient frontier in portfolio theory? The efficient frontier is a concept in portfolio theory that represents...
December 30, 2022
