Research introduces a method for comparing financial assets by equalizing risk levels, suggesting better capital efficiency.
This paper introduces the Adjusted Return (AR) model, a novel mathematical framework for normalizing financial asset performance using the Annualized Negative Logarithmic Return (ANLR). By establishing the S&P 500 as a universal benchmark anchor (100% ANLR), the model provides an objective scale for comparing disparate assets, from traditional equities to high-volatility digital assets and AI-driven strategies. The research demonstrates how AR uncovers true capital efficiency by neutralizing asymmetric risk and volatility drag.
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Motty Shai (2026) studied this question.
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