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The Short Answer

Why You Should Care About Risk-Adjusted Returns

Don't be intimidated by this technical-sounding performance measure. The concept is intuitive and the data is easy to interpret.

Karen Wallace, CFP®

May 8, 2018

Q: Do risk-adjusted returns really matter? At the end of the day, isn't it actual returns that matter?

A: The first quarter of 2018 brought a refresher course in volatility after two very placid years of stock market gains. Now seems like a good time to reacquaint ourselves with volatility-adjusted return metrics.

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