Afford Anything cover image

What We Learned in 2022

Afford Anything

How to Calculate the Sharp Ratio in a Normal Market

4min Snip

00:00
Play full episode
In a normal market, the standard deviation shows us what pros call the wiggle. If we have an investment that we expect to do 8%, and the standard deviation is 14, that means it is perfectly normal for that investment to be at negative six sometimes. The goal of SHARP is to compare to investments specifically to see if they really help with risk adjusted return.

Get the Snipd
podcast app

Unlock the knowledge in podcasts with the podcast player of the future.
App store bannerPlay store banner

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode

Save any
moment

Hear something you like? Tap your headphones to save it with AI-generated key takeaways

Share
& Export

Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode