STOCK GOODIES PLAYS OF THE WEEK

[GreenReeper]

The Sharpe Ratio is used to measure risk-adjusted return. It is simply total return less the risk-free return divided by the standard deviation. As noted above, the standard deviation is considered inferior because it accounts for both upside and downside volatility. Long only investors are not concerned with upside volatility. It is the downside volatility that produces drawdowns and stomach ulcers.