But its risk-adjusted performance earns Morningstar's highest rating.

There are broad similarities, since both place significant weight on risk-adjusted performance.

The 10 percent of funds at the top of a ranking of recent risk-adjusted performance, for example, are given five stars.

Morningstar ranks funds on a scale of one to five stars, according to their historical, risk-adjusted performance.

"Growth is beating value and my mid- and large-cap funds have great risk-adjusted performance," he said.

Three tests have been developed to estimate the risk-adjusted performance of portfolios:

The ratings are based on Morningstar's measure of risk-adjusted performance, and grading is done on a curve.

Only the SRI funds had any significant positive risk-adjusted performance.

His publication showcases mutual funds that have above-average rankings for risk-adjusted performance.

Drawing on her grandfather's pioneering work on corporate leverage, she developed over the next year a measure that she called risk-adjusted performance.