The Treynor ratio and the Sharpe ratio are financial metrics that use different approaches to evaluate the risk-adjusted returns of an investment portfolio. The Treynor ratio employs beta and measures ...

Before you jump into any investment, it's important to determine if a company can maintain its liquidity and remain solvent over time. Liquidity and solvency ratios work together, but they shouldn't ...

Following the introduction of the Skill Ratio, it's worth exploring how it differs from the information ratio. First, how are they calculated? The information ratio's ...

A mutual fund's expense ratio tells you the percentage of a fund's assets that are dedicated to running the fund. When researching mutual funds, you're likely to encounter two different numbers: gross ...

Financial ratios help investors determine which businesses to buy into. These ratios also help business leaders discern whether particular strategies are working. While there are dozens of types of ...

Gross expense ratio covers total fund fees; net ratio reflects fees after waivers. Fee waivers are temporary, so note the potential rise to the gross ratio. A lower expense ratio means more of your ...

Learn the difference between management fees and management expense ratios, and how each impacts the cost-effectiveness and performance of investment funds.

David Kindness is a Certified Public Accountant (CPA) and an expert in the fields of financial accounting, corporate and individual tax planning and preparation, and investing and retirement planning.

Before you jump into any investment, it's important to determine if a company can maintain its liquidity and remain solvent over time. Liquidity and solvency ratios work together, but they shouldn't ...