Okay, I hate to ask dumb questions, but I have searched and can’t find the answer on the web site. What exactly is the Sharpe Ratio?
I went to Google and found the answer. The Sharpe Ratio is a direct measure of reward to risk. Thanks!
I’m glad I asked this dumb question. I went to Google and it got me to a web site that explained the Sharpe Ratio history and how it all works. It’s a fairly detailed formula and I am very glad that they figure it here at C2 for us. Anywho, I found that a rating of 2+ is very good and that is now my goal. Anywho, everybody have a great weekend.
Sharpe Ratio is basically the risk adjusted performance compared to the risk free rate, such as the US government treasuries.
