ReedReads@lemmy.zip to No Stupid Questions@lemmy.world · 4 months agoWhen investing your money, what is considered a good rate of return?message-squaremessage-square14fedilinkarrow-up137arrow-down11
arrow-up136arrow-down1message-squareWhen investing your money, what is considered a good rate of return?ReedReads@lemmy.zip to No Stupid Questions@lemmy.world · 4 months agomessage-square14fedilink
minus-squareoxlikesmath@lemmy.worldlinkfedilinkarrow-up2·3 months agoThe Sharpe ratio https://www.investopedia.com/terms/s/sharperatio.asp attempts to solve this exact problems. It basically uses how much your rate of returns vary to help you compare the risk of return to lower risk assets.
The Sharpe ratio https://www.investopedia.com/terms/s/sharperatio.asp attempts to solve this exact problems. It basically uses how much your rate of returns vary to help you compare the risk of return to lower risk assets.