Required rate of return (RRR) gives investors a benchmark to determine the minimum acceptable return on an investment considering the risk involved. By calculating RRR, investors can assess whether an ...

Michael Boyle is an experienced financial professional with more than 10 years working with financial planning, derivatives, equities, fixed income, project management, and analytics. Investopedia / ...

Downside risk refers to the potential for an investment to decrease in value. Unlike general risk, which considers both upward and downward price movements, downside risk focuses solely on the ...

High risk-adjusted returns suggest efficient performance for the invested capital. Low risk-adjusted returns indicate potentially suboptimal investments. Comparing risk-adjusted returns helps select ...

Relying on the backtest, SPMO generates alpha compared to the S&P 500 or other factor-based ETFs. The time-sensitive structure of SPMO mitigates the overcrowded risk, but hardly calms downturns, and ...

However, this ‘doubling of investment’ is an illusion. People fail to factor in the time value of money – the concept that a certain sum of money has greater value now than it will in the future due ...