Is Sharpe ratio higher better?
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Elon Muskk
Doctor Elon
As a financial expert with a deep understanding of investment metrics, I can tell you that the Sharpe ratio is indeed a crucial measure for investors. It helps to evaluate the performance of an investment by adjusting for its risk. The higher a fund's Sharpe ratio, the better its returns have been relative to the risk it has taken on. This is important because it allows investors to compare funds that may have different levels of risk. The use of standard deviation in the calculation of the Sharpe ratio makes it a versatile tool that can be applied across various fund categories to assess risk-adjusted performance.
The Sharpe ratio uses standard deviation to measure a fund's risk-adjusted returns. The higher a fund's Sharpe ratio, the better a fund's returns have been relative to the risk it has taken on. Because it uses standard deviation, the Sharpe ratio can be used to compare risk-adjusted returns across all fund categories.
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The Sharpe ratio uses standard deviation to measure a fund's risk-adjusted returns. The higher a fund's Sharpe ratio, the better a fund's returns have been relative to the risk it has taken on. Because it uses standard deviation, the Sharpe ratio can be used to compare risk-adjusted returns across all fund categories.
