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Usually those active managers stay in business by saying they get "superior risk-adjusted returns" even though they didn't outright get better returns. This is
by roncesvalles 1y ago
Usually those active managers stay in business by saying they get "superior risk-adjusted returns" even though they didn't outright get better returns.
This is, of course, changing the goal post because a portfolio with 90% S&P 500 and 10% cash will also appear "superior risk-adjusted" than 100% S&P 500. Sharpe ratio is the most misunderstood metric invented by humanity.