Appraisal Ratio Definition
Below please find a definition of “Appraisal Ratio”
Appraisal Ratio: The appraisal ratio is use by fund of fund portfolio managers or hedge fund consultants but is less often seen on a standard 1-2 page hedge fund analytics reports. You find the Appraisal Ratio by taking the alpha of the hedge fund portfolio and dividing it by the non-systematic risk of the portfolio. The result is a ratio that measures the abnormal returns per unit of risk that could at least in principle be diversified away by holding a market index portfolio.
Want to learn more about the Appraisal Ratio?
- Journal Article using the Appraisal Ratio to look at Japanese Equities
- PowerPoint Presentation on Ratios, including the Appraisal Ratio
- Investment analytics report discussing the use of the Appraisal and other portfolio management ratios
Free MP3 Download: To download our free 35 minute audio interview with expert Richard C. Wilson on how to succeed in the field of finance please click here.
Fast Financial Training: If you want to take your finance or business career to the next level you should explore our financial analysis certification program, or our training programs on financial modeling, investment banking, hedge funds, or private equity. All of these programs are offered on https://BusinessTraining.com
Expand Your Financial Vocabulary: Read more finance terms and definitions
Tags: Appraisal Ratio, Appraisal Ratio Definition, Appraisal Ratio Explanation, Appraisal Ratio Calculation, Hedge Fund Appraisal Ratio