What is Sortino Ratio?
Sortino Ratio A risk-adjusted performance metric that measures the excess return of a portfolio over the risk-free rate relative only to downside deviation, isolating negative volatility.
Source: CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework
How is “Sortino Ratio” Used in Practice?
The Sortino Ratio is preferred when evaluating investments where downside risk is a greater concern than total volatility.
Certification Exam Relevance
Who Needs to Know This Term?
- Financial Analysts
- Bankers
- Traders
Learn “Sortino Ratio” Free with Termify
Master Sortino Ratio and 4,071+ professional terms with native pronunciation, IPA transcriptions and career quizzes. 100% free, forever.
Download Free for iOSFrequently Asked Questions
What is Sortino Ratio?
A risk-adjusted performance metric that measures the excess return of a portfolio over the risk-free rate relative only to downside deviation, isolating negative volatility.
Where can I learn this term for free?
Termify is a 100% free professional English app that teaches Sortino Ratio and 4,071+ other industry terms with native pronunciation, IPA transcriptions and career quizzes. Available on iOS in 23 languages. No subscription, no credit card required.
Last updated: