The 'performance ratio' is calculated as:
Understand the Problem
The question is asking for the formula used to calculate the 'performance ratio' in financial contexts. It presents multiple options to choose from, which involve calculations involving risk and return.
Answer
Return divided by risk.
The final answer is 'Return divided by risk'.
Answer for screen readers
The final answer is 'Return divided by risk'.
More Information
In context of financial assessment, performance ratio often refers to risk-adjusted performance, which can be seen as returns divided by risk measures.
Tips
Common confusion arises from mixing up the formula with non-financial performance measurements.
Sources
- Performance Ratio | SolarFarmer Documentation - My Workspace - myworkspace.dnv.com
- Understanding the Performance Ratio of a Solar Plant - RenewSys - renewsysworld.com
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