Risk-adjusted return ratios in python Let us now find out the various measures along with the formula of each for risk-adjusted return in Python. The following are the measures: Sharpe ratio Information ratio Modigliani ratio (M2 ratio) Treynor Ratio Jensen’s Alpha R-squared Sortino Ratio...
Let's say you run the linear regression model and the R-squared value came out 0.8 which means that 80% of the variation in sales can be explained by the advertising expenditure and the price of the product. Whereas the adjusted R-squared value would be lower than the R-squared value. ...