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Higher numbers reflect greater volatility and risk. Sharpe Ratio. This is a measure of risk-adjusted performance. Higher numbers mean that the adviser did better in relation to the amount of risk he/she incurred. We calculate the Sharpe Ratio using monthly data, and then annualize it by multiplying by the square root of 12.

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MoneyShow’s free investing and trading newsletters provide you with daily expert industry forecasts, specific stock recommendations, proven trading strategies, insights regarding the latest and most significant market trends, …

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