Value at Risk Formula As with many financial applications, the formula sounds easy as it only has a few inputs. However, manually calculating the VaR for a large portfolio is computationally intense.

The Sharpe Ratio is a mathematical formula which measures the performance of an asset or a group of assets relative to their assumed risk. Formulaically, the Sharpe Ratio is the expected returns ...

Author's analysis via Excel spreadsheet Above is a chart depicting the expected payout as a function of p at a preset reward/risk ratio of 5.

It found the bank’s Value at Risk (VaR) was being calculated with an Excel spreadsheet that “required time-consuming manual inputs to entries and formulas, which increased the potential for ...

Learn what Value at Risk is, what it indicates about a portfolio, its pros and cons, and how to calculate the VaR of a portfolio using Microsoft Excel.