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3 S&P 500 Stocks With Sky High Risk-Adjusted Returns
FICOFICO(FICO) MarketBeat·2024-12-03 14:17

High-return investments are appealing, but high-risk-adjusted-return investments are even more valuable. While risk can be challenging to measure, investors often use volatility as a proxy. In this approach, stocks with larger and more frequent price swings—both upward and downward—are considered riskier. One way to measure a stock's risk-adjusted returns is to subtract the risk-free rate from its return over time. Then, divide that result by its volatility over that period. Investors know this as the Sharp ...