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To: Kirk © who wrote (7783)9/8/1998 5:03:00 PM
From: Ken Brown  Respond to of 42834
 
... the article gives a "Sharpe ratio" of 0.5 for the portfolio with the 8.8% annual return.

That's a pretty awful Sharpe ratio. According to Morningstar, the Sharpe ratio of the average Mid-Cap Growth fund (for example) was .93 (as of 12/31/97). (The higher the number, the better the risk-adjusted performance.)

Morningstar uses a 36-month period - I don't know what period the .5 number covers.

Ken