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Episode 059: Dr. William F. Sharpe, host Jon Luskin

Bogleheads On Investing Podcast

CHAPTER

The Sharp Ratio: A Risk Adjusted Return Metric for Index Funds

In principle, the sharp ratio should be used for your whole portfolio. For a whole portfolio, don't just use the standard deviation. Look at the whole distribution. How many months over the last 20 years did it lose 20%? Did it lose 19%? Show the range of things that happened and how frequently they happened.

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