Discover how the risk-adjusted discount rate reflects investment risk and return, helping you to evaluate the valuation of projects with potential risk.

This article is the first part of a five-part series. I'll go over each of these concepts in greater detail, starting with risk-adjusted returns. What Are Risk-Adjusted Returns? When investing, it's ...

High risk-adjusted returns suggest efficient performance for the invested capital. Low risk-adjusted returns indicate potentially suboptimal investments. Comparing risk-adjusted returns helps select ...

Excess returns are returns achieved that are more significant than the return of a proxy. Excess returns will depend on a designated investment return comparison for analysis.