Appraisal Ratio

An appraisal ratio is a measurement which compares the alpha of an investment fund with its residual standard deviation. This ratio indicates the balance between the return on investments made by an investment fund and the risk associated with the investments.

Low appraisal ratios indicate that a fund has a high level of risk in relation to the returns it delivers, which is negative. High appraisal ratios indicate that a fund has high returns on investments compared to the level of risk it carries, which is positive.

More on this topic:
Online trading platform comparison

About is Switzerland’s independent online comparison service covering banking, insurance and telecom. More than 80 unbiased comparison tools and calculators are available on, along with useful financial guides and timely news. The comprehensive comparison tools help you to find the right insurance policies, bank accounts, credit and prepaid cards, loans, mortgages, trading accounts and telecom products for your needs.