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~8 1/2 times more risky?
Just a quick guestimate. If SR = Return / V, where V = variability or
volatility or whatever, etc., then in the V = Return / SR.
In the first case, V = 0.09 / 1.1 or 0.0818181.
In the second case, V = 0.14 / 0.2 or 0.7.
So the second case is 0.7 / 0.08181 or about 8.55 times more risky than
the 1st....
cwest wrote:
Seeking some ideas to express an SR comparison. For example, if the SR of a
sector index was 1.1 and its return was 9%, and for the same period the SR
of a Fund was .2 and its return was 14%, how many times more risky was the
Fund than the sector?
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