Abstract
This chapter discusses how to properly evaluate performance by taking into account not just return, as most commercial rankings do, but also risk. And because risk can be defined in more than one way, there is more than one measure of risk-adjusted returns. We will discuss five of them, some differing in the way they define risk and others in the way they incorporate it into a risk-adjusted measure.
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© 2011 Javier Estrada
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Estrada, J. (2011). Risk-Adjusted Returns. In: The Essential Financial Toolkit. IESE Business Collection. Palgrave Macmillan, London. https://doi.org/10.1057/9780230295193_7
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DOI: https://doi.org/10.1057/9780230295193_7
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-32888-8
Online ISBN: 978-0-230-29519-3
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)