The Ulcer Performance Index (UPI) measures how well a fund or portfolio outperformed a money market index (a risk free investment) over a 12 month period compared with its associated downside risk (as measured by the Ulcer Index). It is calculated by subtracting 5.6% from the Annualized Return to provide a number for the excess return above risk free Treasury Notes. The resultant number is then divided by the Ulcer Index (UI). Essentially, UPI is the measure of the performance of a fund or portfolio per unit of risk taken by that fund or portfolio. The higher the UPI number the better. A high UPI further endorses a stated high investment return. For a more comprehensive technical discussion of the Ulcer Performance Index see the bottom section of http://www.seanet.com/~pgm/ui/ui.htm .
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