The Sharpe Ratio, developed by Nobel laureate William F. Sharpe, is a key tool for evaluating mutual fund performance. It measures risk-adjusted returns, helping investors assess if the returns justify the risk taken. A higher Sharpe Ratio indicates better performance, while a lower ratio suggests poor risk-adjusted returns.
7 investing lessons from Jim Leitner for building the right market mindset
Leitner believes investors should remain open to new ideas and recognise that markets can challenge even experienced participants.