The formula for calculating the capital-to-risk weighted assets ratio is: Capital-To-Risk Weighted Assets = (Tier 1 Capital + Tier 2 Capital) / Risk-Weighted Assets) Assume you want to calculate Bank ...

also known as the reward-to-volatility ratio, is a performance metric for determining how much excess return was generated for each unit of risk taken on by a portfolio. Excess return in this ...

The Sharpe ratio is one way to capture this risk-versus-reward detail and give investors extra insight into their assets' performance. Some investors use an index fund as a benchmark and attempt ...

Investopedia / Mira Norian The debt-to-GDP ratio can be calculated by this formula: A country that's ... the higher its risk of default generally becomes. Governments strive to lower their debt ...

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.