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Decoding Market Cycles and Sharp Ratio: A Deep Dive With Meb Faber

Lead-Lag Live

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The Sharp Ratio of Assets

A ratio is a metric that can be used and abused by investors everywhere. It's basically the return of an asset minus risk for your rate divided by the volatility. The benchmark is most asset classes over time around a sharp ratio of 0.2 to maybe 0.4. There have been four periods where it's kind of nicked above one.

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