Sortino Ratio Calculator
This statistical tool is calculated by subtracting the risk free rate of return from the expected return of the portfolio and dividing the resultant from the downside deviation.
Results...
How to calculate the sortino ratio
Sortino Ratio is used to evaluate the return from the investment for the given level of the bad risk.
Sortino Ratio Formula
The Sortino ratio formula is calculated by dividing the difference between the minimally acceptable return and the portfolio actual return by the standard deviation of the negative asset returns or the downside deviation.
Sortino Ratio =
Example :
Provident funds 2020 figures include an annualized return of 24% and a 20% downside deviation and the risk-free rate is 5%. what is the provident fund Sortino ratio for 2020 ?
Sortino Ratio =
Sortino Ratio =
Sortino Ratio = 0.95
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