Sharpening Skills

The downside risk of investing is a reality that must be given due importance. As is widely accepted, high returns are generally associated with a high degree of volatility. For this purpose the performance of a portfolio must be viewed with respect to the risk assumed. It is here that the Sharpe Ratio comes in handy. For the Sharpe Ratio assesses the return generated by a portfolio, per unit of risk undertaken. Risk in this case is taken to

This article was originally published on July 26, 2007.