Portfolio return and risk, explained
What a return figure or a risk number actually measures, why two apps can show different numbers for the same account, and a worked example for each.
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Cumulative vs annualized return: what's the difference?
Cumulative return is the total growth over a whole period; annualized return states that same growth as a yearly rate.
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What does the Sharpe ratio tell you about a portfolio?
The Sharpe ratio divides a portfolio's return above cash, such as Treasury bills, by the volatility of its returns.
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What is maximum drawdown, and how is it calculated?
Maximum drawdown is a portfolio's largest drop from a peak to a later low, as a percentage of that peak.
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