what is risk adjusted cagr 
to compare the performance and risk characteristics among various investment alternatives investors can use a risk adjusted cagr a simple method for calculating a risk adjusted cagr is to multiply the cagr by one minus the investment s standard deviation if the standard deviation i e its risk is zero then the risk adjusted cagr is unaffected the larger the standard deviation the lower the risk adjusted cagr will be the bottom linecagr is a valuable metric for investors to gauge the performance of their investments over time by smoothing out annual returns it provides a clearer picture of an investment s growth trajectory however while cagr can help compare different investments and predict future values it does not account for volatility or risk investors should use cagr alongside other measures to make well informed decisions understanding its limitations in reflecting the full scope of investment performance 