Definition
When looking to invest, you need to look at both risk and return. While return can be easily quantified, risk cannot. Today, standard deviation is the most commonly referenced risk measure, while the Sharpe ratio is the most commonly used risk/return measure. The Sharpe ratio has been around since 1966, but its life has not passed without controversy. Even its founder, Nobel laureate William Sharp
In Panel Profits
In the Panel Profits market platform, How the Sharpe Ratio Can Oversimplify Risk applies standard portfolio management principles to comic assets and physical collections.
Common mistakes
Do not infer unobserved prices.