205 Introduction to Gauging Risk and Return Together: Alpha and the Sharpe Ratio
By using alpha and the Sharpe ratio together, investors have additional tools at their disposal to help them choose investments.
What you will learn
- Alpha Defined
- How to Use Alpha
- The Sharpe Ratio Defined
- How to Use the Sharpe Ratio
What do you know?
Introduction to Gauging Risk and Return Together: Alpha and the Sharpe Ratio
You may have studied various yardsticks that tell you either how good or how volatile a fund's returns have been. But there are also measures that treat performance and risk together: risk-adjusted performance measures. We'll cover two of the more common yardsticks, alpha and the Sharpe ratio, in this lesson.
