As an investor, your objective is to balance the potential for returns with risk. When assessing risk, investors and financial advisors often apply the Sharpe ratio to their investment analysis. Just ...

The three inputs into a Sharpe ratio calculation are your expected return, the risk-free rate and the standard deviation.

Brian Beers is a digital editor, writer, Emmy-nominated producer, and content expert with 15+ years of experience writing about corporate finance & accounting, fundamental analysis, and investing.

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. Andy Smith is a Certified Financial Planner (CFP®), licensed realtor and educator with over ...

A PEG ratio is a tool used in fundamental stock analysis by investors to assess a share's value. It measures a stock's price-to-earnings ratio against the anticipated earnings growth for the ...

Liquidity ratios are key financial ratios used by internal and external analysts to gauge a company's liquidity, which represents its capacity to pay its existing short-term liabilities if it needs to ...

Financial ratios are relationships determined from a company’s financial information and used for comparison purposes. Examples include such often referred to measures as return on investment (ROI), ...

Learn how to solve proportions effectively. This video breaks down the concept of ratios and demonstrates how to apply them. Proportions are essentially ratios equal to other ratios, and mastering ...