Safety-First Ratio – Excel Template

Ned Krastev
Ned Krastev

The safety-first ratio resembles the Sharpe ratio. However, instead of the risk-free rate, we use threshold level return.

When calculating the Sharpe ratio, we compare against the risk-free rate. With the safety-first ratio, we evaluate the portfolio performance against a minimum acceptable level.

Other related topics you might be interested to explore are Sharpe ratio and Expected Shortfall.

This is an open-access Excel template in XLSX format that will be

useful to anyone who wants to work as an Asset Manager or an Investment Professional.

You can now download the Excel template for free.

Safety-first ratio is among the topics included in the Quantitative Methods module of the CFA Level 1 Curriculum.

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