Sharpe Ratio For Layman

There are many jargons in the fund industry. One of the most common you might come across is Sharpe Ratio. While it sounds complicated, it is actually a simple concept. To put it plainly, it is a productivity measure on investment performance. If you like a deeper look at it, I wrote about it in my earlier posts:

1. Risk-Adjusted Returns — Looking Beyond The Dollars
2. Sharpe Ratio — Bigger Isn’t Necessarily Better

But for those who wanted a shorter and more laid-back appreciation, here it is in video format. In this short video, we present a layman view of what Sharpe Ratio is.

Enjoy the clip.

Originally published at https://investmentcache.com on July 17, 2020.