A Quick Appreciation of the Sharpe Ratio

The current state of the global financial markets has gotten more people than usual worrying about the technical aspects of finance. One method for reasoning about investment returns and risk is a tool called the Sharpe Ratio. It is well worth reviewing this measure and seeing how, if used properly, it doesn’t favor any of the mistakes that underly our current financial crisis. Continue reading A Quick Appreciation of the Sharpe Ratio