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Financial Terms & Definitions
If talking about finances feels like trying to learn a foreign language, we're here to help. As your trusted financial planners and investment managers, we want you to understand the terms, acronyms, and jargon that may arise during your financial journey.
From Amortization to Zero-Coupon, we've got you covered.
Here's our glossary of financial terms in alphabetical order to get you started.

Sharpe Ratio

A measure of the return of a fund relative to the return of a risk-free investment, adjusted for the risk of the fund. Utilized to compare different funds' performance given each fund's unique level of risk. Generally, a higher Sharpe ratio indicates stronger risk-adjusted performance. Calculated by subtracting the annualized return of a risk-free asset (typically proxied by the 3-month U.S. Treasury Bill) from the annualized return of a fund, then dividing the result by the risk of the fund (represented by standard deviation).

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