The Sortino ratio measures the risk-adjusted return of an investment asset, portfolio, or strategy. It is a modification of the Sharpe ratio but penalizes
Capital asset pricing model
In finance, the capital asset pricing model is used to determine a theoretically appropriate required rate of return of an asset, if that asset is to be
Beta (financial elasticity)
In finance, the beta (β) of an investment is a measure of the risk arising from exposure to general market movements as opposed to idiosyncratic factors.
Cost of equity
The cost of capital is a term used in the field of financial investment to refer to the cost of a company’s funds (both debt and equity). Equity is
In finance, leverage is a general term for any technique to multiply gains and losses. Most often it involves buying more of an asset by using borrowed