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The Omega ratio is a risk-return measure used in finance to assess the performance of an investment or a portfolio. It provides a way to evaluate the likelihood of achieving returns above a certain threshold while taking into account the downside risk. The Omega ratio is calculated by comparing the probability-weighted returns of an investment above a specified target return (often chosen as zero or a risk-free rate) to the probability-weighted returns below that target.

Ancestors (6)

  1. Financial risk modeling
  2. Actuarial science
  3. Applied mathematics
  4. Fields of mathematics
  5. Mathematics
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