There are several ways to calculate RRR, and different methods are better suited for different situations. A simple way for investors to look at RRR is: RRR = Risk-Free Rate + Risk Premium.

Opinions expressed by Forbes Contributors are their own. I write about the management of wealth, portfolios, and finances. “Risk” is a something of a loaded word, having a somewhat negative ...

To calculate the Sharpe ratio, you first need your portfolio's rate of return. Next, you need the rate of a risk-free investment, such as Treasury bonds. Subtract this risk-free rate from your ...

one of the few safety devices you have is the risk-reward calculation. The actual calculation to determine risk vs. reward is very easy. You simply divide your net profit (the reward) by the price ...