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To: timbur who wrote (10047)1/7/1999 4:30:00 PM
From: Sun Tzu  Respond to of 16960
 
How do you calculate the "risk-adjusted returns"?

The standard method of doing this is called the Sharpe Ratio, which is the returns divided by the standard deviation of stock price. Personally I start with the Sharpe Ratio and then make a mental adjustment based on company specific issues. It takes too long to explain all the factors involved here and I don't have all the answers either. Perhaps you'd like to bring it up in AoI and see if there are any takers.

ST