A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related Brickyard terms
- AlphaThe extra return an investment earns above or below what its risk level and the market would predict.
- BetaA measure of how much an investment tends to move compared with the overall market.
- Standard DeviationA statistic showing how widely an investment's returns swing around their average, used to gauge risk.
- Sharpe RatioA number comparing an investment's return to its risk, helping you judge if the reward justified the ups and downs.
- Total ReturnThe full gain on an investment, combining price changes with any dividends or interest it paid.
- Risk ToleranceHow much investment ups and downs you can handle emotionally and financially without changing your plan.
Turn this into a brick
Knowing what Risk-Adjusted Return means is knowledge — the first half. A brick gets placed when you act on it.
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Plain-English education — not personalized legal, tax, or investment advice.