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Pain Ratio Formula

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Pain Ratio provides a better assessment for understanding the amount of return per unit of risk, measured in terms of capital preservation. Check FAQs

PR = \frac{ER}{PI}

PR - Pain Ratio?ER - Effective Return?PI - Pain Index?

Pain Ratio Example

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Here is how the Pain Ratio equation looks like with Values.

Here is how the Pain Ratio equation looks like with Units.

Here is how the Pain Ratio equation looks like.

7.3333 = \frac{110}{15}

7.3333 = \frac{110}{15}

7.3333 = \frac{110}{15}

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Pain Ratio Solution

Follow our step by step solution on how to calculate Pain Ratio?

FIRST Step Consider the formula

PR = \frac{ER}{PI}

Next Step Substitute values of Variables

∴

PR = \frac{110}{15}

Next Step Prepare to Evaluate

∴

PR = \frac{110}{15}

Next Step Evaluate

∴

PR = 7.33333333333333

LAST Step Rounding Answer

∴

PR = 7.3333

Pain Ratio Formula Elements

Variables

Pain Ratio

Pain Ratio provides a better assessment for understanding the amount of return per unit of risk, measured in terms of capital preservation.

Symbol: PR

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Pain Ratio

Effective Return

Effective Return is a measure that accurately calculates the actual amount of return gained on an investment, taking into account the effects of compounding over a certain period.

Symbol: ER

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Effective Return

Pain Index

Pain Index is a tool for advisors to help them define and measure risk in terms investors can feel and relate to how much money they might lose.

Symbol: PI

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Pain Index

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How to Evaluate Pain Ratio?

Pain Ratio evaluator uses Pain Ratio = Effective Return/Pain Index to evaluate the Pain Ratio, The Pain Ratio provides a better assessment for understanding the amount of return per unit of pain index which evaluates investments for the up, down, and side-to-side risk. Pain Ratio is denoted by PR symbol.

How to evaluate Pain Ratio using this online evaluator? To use this online evaluator for Pain Ratio, enter Effective Return (ER) & Pain Index (PI) and hit the calculate button.

FAQs on Pain Ratio

What is the formula to find Pain Ratio?

The formula of Pain Ratio is expressed as Pain Ratio = Effective Return/Pain Index. Here is an example- 4.666667 = 110/15.

How to calculate Pain Ratio?

With Effective Return (ER) & Pain Index (PI) we can find Pain Ratio using the formula - Pain Ratio = Effective Return/Pain Index.

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Pain Ratio Formula

Pain Ratio Example

Pain Ratio Solution

Pain Ratio Formula Elements

Other formulas in Risk Management category

How to Evaluate Pain Ratio?

FAQs on Pain Ratio

Variable Name