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.
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.