Course 205:
Gauging Risk and Return Together, Part 1
In this course
1 Introduction
2 Alpha Defined
3 How to Use Alpha
4 The Sharpe Ratio Defined
5 How to Use the Sharpe Ratio

Up until now, we've focused on yardsticks that tell you either how good or how volatile a fund's returns have been. But there are also measures that treat performance and risk together: risk-adjusted performance measures. We'll cover two of the more common yardsticks, alpha and the Sharpe ratio, in this lesson. You can find both of these figures on the Morningstar fund report.

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