Talk:Sharpe ratio/Archives/2015

Strengths and Weaknesses
The section on Strengths and Weaknesses includes some statements that sound like personal option. The paragraph below, and particularly the final phase is problematic in that regard (emphasis mine),

"The main complaint is this ratio relies on the notions that risk equals volatility and that volatility is bad. Simple logic will tell you that the more you reduce volatility, the less likely you are to be able to capture higher returns. But the bigger problem for the Sharpe is that it treats all volatility the same. Basically, the ratio penalizes strategies that have upside volatility (i.e., big positive returns), but those that developed other risk adjusted ratios just don’t think big positive returns should be viewed as a negative thing."

Techguy95 (talk) 01:46, 18 September 2015 (UTC)