👉 The Beta IOR, or Beta Inverse Return, is a risk-adjusted performance metric used to evaluate the efficiency of an investment portfolio by accounting for both the return and the volatility (or risk) of that return. Unlike traditional return metrics, which only consider gains, the Beta IOR adjusts returns to reflect the actual risk taken by investors, providing a more nuanced view of performance. It is calculated by comparing the portfolio's actual return to its expected return based on its beta, which measures its sensitivity to market movements. This allows investors to assess whether the portfolio has outperformed its benchmark relative to the risk it has assumed, making it a valuable tool for comparing different investment strategies and portfolios.
