When investing your money, what is considered a good rate of return?
oxlikesmath @ oxlikesmath @lemmy.world Posts 0Comments 5Joined 1 yr. ago
oxlikesmath @ oxlikesmath @lemmy.world
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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.