In order to make an educated decision when making any investment, you need to try to determine how much you could make on that investment. It’s also important to know how much you’ve made on the ...

Learn what active risk is and how to calculate it. Understand the methods to evaluate active risk in portfolios and explore examples of funds outperforming benchmarks.

Every thriving business relies on a robust return on investment (ROI) to help gauge whether its investments are yielding a profit. Although you as an individual investor possess shallower pockets than ...

Learn how exclusion ratios can optimize annuities by distinguishing tax-free returns from taxable income. Explore examples and their role in effective tax strategies.

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 ...

The JHI fund focuses on investments in junk bonds to generate a high yield. It has a current yield of 9.3%. However, it has a mediocre 10Yr average annual return of 3.6%. The JHI is paying out more ...

Examples of passive investments include ETFs or other funds tracking the S&P 500, the Nasdaq 100 or U.S. investment-grade bonds. The major flaw in this widely adopted category is that all “passive” ...

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Return on investment is a metric that measures the amount of profitability earned on a particular investment by comparing its costs to its returns. The purpose of any business is to earn a profit, ...