Explore the significance of the debt-to-equity ratio in assessing a company's risk. Learn calculations, industry standards, ...

The ratio is calculated by dividing a bank's total capital by it's risk-weighted assets. Under the Basel III accord, the minimum requirement of capital-to-risk weighted assets is 10.5%.

The Sortino ratio uses three inputs for its formula. The numerator is the difference between a portfolio's return and the risk-free rate of return. You can use a portfolio's actual or expected return.

The Sharpe ratio is a financial metric showing how an investment is performing relative to its risk. The higher an investment's risk ratio is, the more returns it offers relative to its risk.