risk-adjusted
121Sterling Ratio — A ratio used mainly in the context of hedge funds. This risk reward measure determines which hedge funds have the highest returns while enduring the least amount of volatility. The formula is as follows: This formula uses the average for risk… …
122Alpha — A measure of selection risk (also known as residual risk) of a mutual fund in relation to the market. A positive alpha is the extra return awarded to the investor for taking a risk, instead of accepting the market return. For example, an alpha of …
123Return on capital — Return on invested capital (ROIC) is a financial measure that quantifies how well a company generates cash flow relative to the capital it has invested in its business. It is defined as Net operating profit less adjusted taxes divided by Invested …
124Strategic Sustainable Investing — (SSI) is an investment strategy that recognizes and rewards leading companies that are moving society towards sustainability. SSI relies on a consensus based scientific definition of sustainability, and the assumption that ‘ Backcasting from… …
125Alpha Generator — Any security that, when added to an existing portfolio of assets, generates excess returns or returns higher than a pre selected benchmark without additional risk. An alpha generator can be any security; this includes government bonds, foreign… …
126Modified Sharpe Ratio — A ratio used to calculate the risk adjusted performance of an asset or a business strategy. The modified Sharpe ratio is a version of the original Sharpe ratio amended to include skewed/abnormal data. It is calculated by dividing the excess… …
127Treynor Ratio — A ratio developed by Jack Treynor that measures returns earned in excess of that which could have been earned on a riskless investment per each unit of market risk. The Treynor ratio is calculated as: (Average Return of the Portfolio Average… …
128BRIC — Not to be confused with BRICS. Brazil, Russia, India, China BRIC Federative Republic of Brazil President (head of state and government): Dilma Rousseff Russian Federation President (head of state): D …
