The upside potential ratio is a measure of a return of an investment asset relative to the minimal acceptable return . The measurement allows to choose strategies with growth that is as stable as possible for a given minimum return.

where R - return, P_r - probability of such return, R_min, min - minimal acceptable return.

The measure was developed by Frank A. Sortino .

See also

• Modern portfolio theory
• Sharpe ratio
• Sortino ratio

External link

• Paper by Frank A. Sortino