What Is the Sharpe Ratio? Formula and Example
“The Sharpe ratio is the excess return of an investment divided by the standard deviation of returns, which is a measure of risk,” says Asher Rogovy
Asher Rogovy
December 8, 2023
“The Sharpe ratio is the excess return of an investment divided by the standard deviation of returns, which is a measure of risk,” says Asher Rogovy
“When it comes to investing, wealthy individuals and families often have advantages that come from their investment advisors,” said Asher Rogovy, chief investment officer at Magnifina.
Asher Rogovy, chief investment officer of Magnifina LLC, says: “If an investor is simply seeking exposure to a real estate market in an IRA, using a REIT can be considerably easier.”
Rogovy puts crypto in a category alongside things like commodities and art that are “worth only what the next buyer is willing to pay for them.”
“From May 2003 to May 2023, Monster Beverage Corp (MNST) returned an astonishing 144,000%,” says Asher Rogovy
“TIPS include a compensation mechanism based on the CPI, which is a common measure of inflation,” points out Asher Rogovy, chief investment advisor at Magnifina.
According to Rogovy, stocks return a stable average of about 6.5% per year after accounting for inflation. Investors can receive even greater returns with a well-selected portfolio of stocks.
“Sometimes there’s an X factor, but strong businesses begin with a strong management team,” said Asher Rogovy, chief investment officer at Magnifina, LLC.
“If you have perfect foresight about interest rates, then it makes sense to buy high-credit, fixed-rate bonds. Generally, these are U.S. Treasurys,” Rogovy says.
“Gold is the ultimate safe haven. In times of extreme political uncertainty and international conflict, gold can protect against a wide range of rare and severe risks,” said Asher Rogovy